Looking For a Chance to Finally Finance Your Own Home?
Many people struggle with coming up with the down payment for their first homes. While for some people an FHA loan is a suitable option, for low to middle income buyers buying a home in non-urban areas, a USDA loan is a great choice. The USDA Rural Development’s Single Family Housing Guaranteed Loan Program offers up to 100% financing for income-qualified people in Lehigh Valley, PA.
Why choose a USDA home mortgage?
- The loan is insured by the U.S. Department of Agriculture.
- 100% financing is available. This means that no down payment is required for this mortgage. This feature makes a USDA loan one of the most desirable loan programs.
- USDA home loan interest rates are affordable and monthly payments often better than FHA or conventional mortgage loans. The individual mortgage lender determines the interest rates on USDA guaranteed home loans.
- There is no first-time buyer requirement. Repeat home buyers are welcome, even if they have owned a home in the past or currently own a home that is no longer suitable.
- The USDA loan has relatively low mortgage insurance requirements, especially in comparison with the FHA loans. There is a 2% insurance fee (an upfront premium paid at closing) and a .40% annual fee on the remaining balance. This is much lower than FHA loan insurance.
- Unlike other loan programs, the USDA loan does not have a mortgage loan limit. There is no maximum purchase price. The applicant's income must qualify for the purchase price of the house.
Am I Eligible for the USDA loan?
Perhaps the most important requirement for this loan is that the intended purchase be in a rural area. The USDA defines “rural” as any town with a population of 10,000 people or less. The home must be a single family owner occupied residence. There are household income limits for this program based on the county and family size.
To find out if a particular home is in a designated rural area, visit: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.
An experienced mortgage company like Millennium Home Mortgage can help you navigate the ends and out of a USDA loan. Contact us today to find out more information on eligibility requirements for a USDA home mortgage in Lehigh Valley, PA.