USDA home loans offer no down payment options to home buyers throughout Virginia.
USDA home loans are insured by The U.S Dept of Agriculture and offer home buyers a great way to get into a home with little or no money down. With USDA or Rural Housing Loans, you can get into a home with no money down, no pre-payment penalties and they are available with very low 30 year fixed rates.
What Are The Qualification Requirements for The USDA Loan
USDA home loans do have specific guidelines for qualification. A few examples would be: Although the USDA’s definition of ‘rural is quite liberal and many small towns qualify, the property must be in a covered area, typically a suburban or rural area. Metropolitan cities would not qualify. Also, there are income guidelines as well. Home buyers who apply for a guaranteed home loan from the USDA can only make up to 115% of the median income for that area. The property itself must be your primary residence, non income producing and most often 5 acre or less tracts, so no farms or horse stables and barns. Click here to check your home’s USDA loan eligibility.
USDA Home Loans Do Have Mortgage Insurance
USDA mortgages offer lower mortgage insurance rates then comparable FHA mortgage loans. The FHA charges a 1.75% of the loan amount as upfront mortgage insurance premium that is added to the loan amount. On top of the upfront charge there is a monthly mortgage insurance amount as well of 1.55%. USDA loans have a .40% monthly mortgage insurance charge and an upfront charge of 2%.
If you need advice concerning USDA Home Loans, feel free to contact a USDA Mortgage Specialist online or call (804) 282-8820. Specialists can help determine whether a USDA Home Loan is the best loan program for you.