The USDA down payment assistance program was created to provide otherwise unattainable homeownership opportunities for low-income and moderate-income families. At AmeriSouth, we believe that everyone deserves to own their home, and USDA is the way that we help a lot of our clients achieve that goal. Feel free reach out by phone or by email, and we’ll discuss USDA with you, explain all of your options, and prequalify you.
You Might Be Surprised About Which Areas are Eligible for USDA
About a mile-and-a-half from downtown Davidson is a very rural-looking area. Yet, it is surprisingly close to town. In fact, it’s so close, that you could probably walk to Downtown Davidson in 20 – 25 minutes if you needed to. A lot of people would never think that Davidson would have properties that are USDA eligible since USDA loans are given for rural area homes. When people think “rural areas,” they tend to think “out in the boondocks.”
Not just Davidson, but almost every city or town has an area like this – an area that few would expect to qualify for USDA down payment assistance. If you are okay with living just outside of town, there is likely some opportunity for USDA in your neck of the woods. Give AmeriSouth a call, and we’ll help you find out if the home you want to buy is in a USDA-eligible area.
Eligibility for USDA Down Payment Assistance Program
USDA loans offer no money down and no mortgage insurance. Yes, USDA loans are great, and just about every loan borrower would probably like to get a USDA loan if they could, but USDA loans are not eligible for every borrower because there are income requirements or caps on household income. Also, USDA loans are not available on all properties.
The income requirement for USDA is going to be based on the number of people who live in the house and not just the number of people who are on the loan. With most loans, these numbers are determined by who is on the loan, but USDA loans count everybody who lives in the household and all of their combined income.
For example, if Husband and Wife both work, but only Husband is on the loan; if their combined income is less than the USDA limits for their county, then they would likely qualify for a USDA loan. However, if their combined income exceeds the maximum USDA limit, they would not qualify.
Find Out if You’re Eligible for USDA
As mentioned, not every home is going to be eligible for a USDA loan. Unfortunately, there’s no map that you can look at and say, “Oh, that whole area is USDA eligible.” An easy way to find out is to go the USDA website and put in the address of the property. The site will tell you whether or not it’s USDA eligible. You can also type in the monthly income of your household and see if you’re within the income limits for USDA down payment assistance.