USDA LOANS
USDA loans are intended to help lower income borrowers achieve home-ownership in more rural areas through potentially huge savings over a conventional loan!
Things to know:
- No down payment required (as long as you qualify otherwise).
- Due to lower rates and mortgage insurance fees, monthly payments are generally cheaper than on a conventional loan.
- 97% of US land is USDA eligible! Even though the intention is "rural land", often homes close to urban centers are eligible.
- There are household income limits. As of 2021, it is $140,650 for a family of 1-4 people, and $185,450 for families of 5+. Anyone that will be living in the home (even if not on mortgage) will be included in the income calculation.
- Single family homes only. Condos and modular homes are allowed. Some lenders will finance a new manufactured home to be placed on eligible land.
- Most lenders require a credit score of 640 or higher, but some do accept a lower score.
- Single close construction loans and renovation loans are offered by some lenders, reach out to me to find to out what is currently available.
Check a specific property's eligibility here: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
USDA Eligibility Zones - Everywhere except where shaded in yellow