The USDA loan is part of a federal program that supports rural development. If you’re buying a home in a rural area, make sure to check with me to determine if you’re eligible for a USDA loan. The USDA loan requires ZERO down payments – which is almost unheard of these days.
Other benefits to the USDA loan includes a 30-year fixed interest rate – meaning the rate will not adjust over its lifespan. Also, no mortgage insurance is required on a USDA loan.
If you’re eligible for a USDA loan, this is a great route to financing. Below are some eligibility requirements:
Rural area You must purchase property within an eligible area. To determine if you’re eligible, check out the interactive map on the USDA’s website or call my office at 954-641-8103.
Income requirements There is an income limit that is set for your county – you must not exceed that in order to be eligible. Some of the factors that go into determining include:
The total number of people in the household
The number of residents under age 18 (or disabled or full time students)
The number of disabled persons in the home
Your monthly expenses versus your income
Credit history This works differently than a credit score – your credit history will be reviewed to determine if you appear to be someone able to repay the debt and not default on the loan.