US Department of Agriculture (USDA) loans allow home buyers to purchase in designated rural areas with favorable loan terms such as zero down payment. In order to qualify, you must meet USDA income eligibility.
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What Are USDA Loans?
A USDA Loan is a home financing program that helps low to moderate income borrowers achieve homeownership while simultaneously fostering development in less-populated communities.
Benefits of a USDA Mortgage
- Eligible properties include single-family homes, new construction, modular homes, planned unit developments, new manufactured home, and eligible condominiums.
- Zero down payment required.
- No minimum credit score requirement & non-traditional credit may be used to qualify.
- A single, upfront mortgage insurance premium is required, which can be financed into the loan itself; no monthly mortgage insurance premium.
In order to use a USDA loan, the property must be located in a USDA-eligible area. Since one of the program’s goals is to help increase homeownership in less developed parts of the country, USDA financing is only available to homes in certain USDA-approved zones. If you already have a home in mind, you can check to see if it is eligible for USDA financing by looking it up on the USDA Property Eligibility Map.
Geared toward low or moderate income households, it is possible to earn too much to qualify for this loan. The best way to determine if your income falls within the USDA limits is to speak with a mortgage loan officer.
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Is A USDA Loan Right For You?
USDA loans can be a great option for buyers looking for an affordable monthly payment and low down payment who are looking for a home in a USDA-eligible area. North and South Carolina have many locations that qualify for USDA loans.
Wondering if you qualify for a USDA loan or if they’re available in your desired location?
Call the team at Alpha Mortgage for a free quote and home loan consultation.