Your Guide to Mortgage Income Requirements
House hunting is a lot of fun, but before you start shopping, it’s vital to know what you can afford. Because requirements ...
Some people feed off the constant energy and excitement of life in the city. But others would rather trade commotion for comfort and skyscrapers for blue sky. But don’t let the word fool you. “Rural” doesn’t mean dirt roads and farms that are disconnected from the rest of the world. It means more space, more tranquility, and more of the things that fit your lifestyle.
Aren’t USDA Rural Home Loans Just for Farmers?
Not at all. While USDA rural home loans are designed to help homebuyers who can’t afford a traditional mortgage or large down payment on homes in crowded metropolitan areas, you may not have to go far to find a property that qualifies for this loan – you may not even have to leave the suburbs.
Flexible Financing
USDA rural home loans offer qualified buyers the ability to purchase a home with $0 down payment. In some cases, the costs for eligible home repairs can be included in the loan, which means no out-of-pocket costs for improvements or renovations.
Seller Contributions Allowed
Sellers have the option to contribute up to 6 percent of the closing costs in order to help the buyer qualify for a loan and avoid upfront costs. Flexible qualifying guidelines offer a good opportunity for low- and moderate-income buyers.
Eligibility Requirements
The requirements vary by state and county, but to qualify for a USDA rural home loan the property you’re purchasing must be located in an eligible area and you must meet certain income restrictions. Your Summit Loan Officer can help you understand the requirements in your area.
USDA Rural Home Loan Overview:
- No down payment for qualified homebuyers.
- Fixed-rate loan.
- More flexible credit score options than conventional loans.
- Lower interest rates than conventional loans.
- Lower mortgage insurance than FHA loans.
- Streamlined refinancing options.
- Up to 6 percent seller contribution allowed.
- Income limits and property location restrictions may apply.
