Finding the down payment for your first home may not be very easy. A USDA loan is a great choice for buyers of low to middle income that would like to buy a home in a non-urban area. The USDA Rural Development’s Single Family Housing Guaranteed Loan program provides up to 100% financing for income-qualified people in the Lehigh Valley, PA.
- The interest rates for a USDA home loan is affordable and the monthly payments are frequently better than that of an FHA loan or a conventional mortgage loan.
- The loan is protected by the U.S. Department of Agriculture.
- You do not need to be a first-time buyer to qualify for this loan. Even if you’re still currently in a home that is no longer suitable, this could be the loan for you.
- 100% financing is available. You do not need a down payment for this mortgage. The USDA loan is one of the most desirable because of this feature.
- There is no mortgage loan limit for the USDA loan. A maximum purchase price does not exist. The income of the applicant must qualify for the purchase price of the house.
- The mortgage insurance requirement for the USDA loan is relatively low, especially in comparison to the FHA loan. There is a 2% insurance fee (an upfront premium paid at closing) and a .40% annual fee on the remaining balance, both much lower than FHA loan insurance.
To find out if a particular home is in a designated rural area, visit: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.
Millennium Home Mortgage, an experienced mortgage lender, can help guide you through the ins and outs of a USDA loan. Contact us today to find out more information on eligibility requirements for a USDA home mortgage in Allentown, PA.