Are you interested in purchasing a home with minimal upfront cost and open to buying property in a rural or suburban area outside of Charlotte? If so, read on to learn about USDA loans. Insured by the United States Department of Agriculture and Rural Development, USDA loans help homebuyers purchase homes with minimal up-front investment. In exchange, these homebuyers help develop and improve not-yet-developed rural and suburban areas. If you’re interested in a USDA loan, contact AmeriSouth Mortgage Company in Charlotte, NC, to learn more.
Backed by the USDA
When people refer to USDA loans, there are actually a few different kinds of programs to consider. For our purposes, we’ll be discussing single family housing guaranteed USDA loans, which are not paid for by the USDA, but rather insured by the USDA. Private lenders fund USDA loans, which are then insured by the USDA and reimbursed up to 90% by the USDA should a borrower default on his or her loan.
To qualify for a USDA loan, you will need to meet certain eligibility requirements and choose a property in an eligible rural area. Eligible USDA loan applicants are subject to income limitations, which vary dependent on the county in which they reside. Applicants must have at least a 640 credit score, occupy the property as their primary residence, and be a U.S. citizen, non-citizen national, or qualified alien. They are not available to purchase working farms.
No down payment is required for a USDA loan, however there may be some fees associated with closing the loan. These mortgages have 30-year fixed rates. If you make payments on time for your USDA loan, you may also consider refinancing after 12 months and secure a lower interest rate.
Working with a USDA Approved Lender
Since the USDA doesn’t fund these loans themselves, individuals work instead with USDA-approved private lenders, like AmeriSouth Mortgage Company. Our mortgage loan originators are available to help show you which areas that surround Charlotte have property eligible for USDA loans. Contact us to get started.