Did you know that there is an option for consumers that want to purchase a home but are on the lower end of the income level? There is! These loans only account for 1% to 2% of the home loan market in the US. The USDA Guarantee Program can help those people that have some income limitation but can also meet some minimum requirements. Let’s take a look at some details.
USDA is an acronym for Unites States Department of Agriculture. The USDA is responsible for a lot of rural America. Therefore, the homes that are eligible for this home loan program must be outside of metro areas. The USDA has provided a great tool to verify if an address meets the requirement. We call it the USDA Eligibility Checker. Check it out!
Zero Down Payment Really? Really! A down payment is not required! The USDA backs the loan for eligible customers with some small fees that are part of the monthly payment. As with every home loan, there are some closing costs associated that are based on the specifics of the loan. This type of loan is not for all! There are income limits based on county median income and family size. So, an investor would not be allowed to use the USDA Zero Down program.
We look forward to talking to you soon!