A USDA loan is a loan that’s guaranteed by United States Department of Agriculture, and zero down USDA loans allow for 100% financing! Indeed, that’s why they’re called “Zero Down.” However, there’s a caveat. These types of loans are for owner-occupied properties that are located in the less populated or rural areas. Does this mean you have to live in the Middle of Nowhere to qualify for a zero down USDA loan? No.
What Areas Does USDA Cover?
While USDA loans are a government program designed to promote homeownership in rural areas, most people are surprised to learn just how vast their geographical options are. Even if you wish to live just outside of town in a suburban area, it may still be covered by USDA.
What are the Benefits of USDA Loans?
Obviously, zero down is an attractive incentive for many people to apply for the USDA loan program. Many homebuyers who apply for USDA wouldn’t ordinarily be interested in living in a rural area or even on the outskirts of town, but they are willing to do so because of the incentives that USDA loans provide.
Another attractive benefit for those who opt for USDA loans is that mortgage insurance is significantly lower than it is with FHA loans.
Also, interest rates are usually lower than traditional rates with a USDA loan.
You may acquire about zero down USDA loans with AmeriSouth lenders. You don’t have to go through a special entity or even the government to get approved. However, unlike an FHA loan, there are income limits with USDA loans. So, you’ll need to make less $76,650 annually for a household of 1-4 persons in order to qualify for a USDA loan, since these loans are typically offered medium income earners.
Again, these loans are geographically based and are specifically designed for homeownership in rural areas, but most suburban areas are covered as well. At AmeriSouth, we encourage our clients who are in the market to buy a home to consider USDA first rather than conventional because they are often surprised to discover just how much a USDA loan can benefit them.
Speak with a Licensed AmeriSouth Lender Today
The option of a USDA loan is appealing to many people. Between zero down and little or zero closing costs, in addition to being able to purchase a home in a beautiful and quiet suburban or rural area; factor in the low interest rates as well; lots of people can’t wait to get their hands on a USDA loan!
Still, you should speak with a lender before you make your decision. More importantly, you should speak with a lender who is competent and whom you can trust. At AmeriSouth, we pride ourselves on honesty, integrity, and open communication. If you would like to explore a zero down USDA loan, schedule an appointment for a consultation. We’ll go over the details of USDA with you and discuss its pros and cons. We’ll get a little background information from you and inform you about other loan products that may better suit your needs.