Are you in the process of buying a home but just not sure how you plan to get funding? Or maybe you’re a first time home buyer looking for potential options to purchase without a significant down payment? Maybe a USDA loan is the right choice for you to fund the purchase of your new home.
What Is A USDA Loan?
The U.S. Department of Agriculture provides mortgage programs that help those looking to secure a home loan without a down payment in specific areas that meet the proper requirements. If you are considering purchasing a home and are not sure whether or not the home or area you have in mind would qualify, you can reach out to AmeriSouth Mortgage in North Carolina to discuss your options. As more and more people purchase homes, the amount of land available has decreased so people moving towards more rural areas is becoming increasingly popular.
Not only does the type of property matter when it comes to qualifying a USDA loan, but the type of loan is important as well. There are two types of loans that are provided by the USDA. The first is a loan guarantee, this is a mortgage issued by a local lender but guaranteed by the USDA. The second type of loan that you can secure through the USDA is a direct loan which are provided for low income applicants which vary by location.
How To Qualify
In the matter of financing, there are a lot of moving parts when it comes to qualifying. You’ll also want to shop around and compare rates to make sure you are getting the best deal available for your area. There are certain requirements that need to be met in order to secure a loan guaranteed by the USDA. For example, the home needs to be owner-occupied as well as the primary residence of the borrower. Other requirements that are needed for a USDA loan are US citizenship, monthly payment, good credit history, and a credit score of at least 680.
Buying a home for the first time can be intimidating if you haven’t been saving for years and years or don’t have employment that can cover your mortgage, but that doesn’t mean it’s not possible for those just starting the search for the first time. In particular, USDA loans can be a great option for home buyers because they provide funding for those with the greatest need. For example, if a family has tried to fund the purchase of a home in the traditional manner without success or has an income that is below the low income level for the area, they will be reviewed for a USDA loan with priority.
The Finer Details
USDA loans may sound like they could be too good to be true, but the truth is they are not, they are reasonable answer to finding a home for those that qualify. USDA loans help families that are low income in rural areas secure funds to purchase a home. Providing the chance to those that may not be able to buy a home in these areas creates a sense of community and establishes a better lifestyle that will continue to flourish as time passes and others begin to invest into the community as well.
Reach Out Today!
If you are thinking about applying for a USDA loan and have questions, we would love to help guide you through the process. Don’t hesitate to reach out to AmeriSouth Mortgage in Charlotte, NC today.