USDA Home Loans - No Money Down Loans

USDA Home Loans - No Down Payment?

So you want to buy a home but you don't have the down payment. What can you do? The 20% down and high credit score required by conventional lenders is just too much for you. That's not going to work. You can save or find some other way to get the 20%, but it may still be tough.

The best way today to get a mortgage is through a government funded program. These programs include FHA which require a 3.5% down payment, and VA loans that require current or past military service to qualify. These are good programs and can be the answer for some, but others will still be left out.

What About USDA Loans?

USDA loans are primarily used to assist low-income people or households purchase homes in rural areas. Funds can be used to build, repair, refurbish or move a home, or to pay for and prepare sites, including providing water and sewage services. Applicants for loans can have an income of up to 115% of the median income for the region. Families must be without adequate housing, but be able to afford the mortgage payments, together with taxes and insurance.  In addition, applicants must have acceptable credit histories. You do need to intend to live in the home for a USDA mortgage.

USDA Loans Are Not Just Rural

A USDA mortgage is for rural areas, but you will be astonished by what a rural locale can mean. Palm Coast Florida is in the fastest growing counties in Florida over the past decade. It is between Ormond Beach and St. Augustine. Homes in Palm Coast and the close by towns of Pierson and Bunnell are eligible. These may not seem like agricultural areas, but they're close to major population centers. In many big cities, there are suburban areas that are eligible. Don't presume your area is not eligible - check it out.

Are You Eligible for a USDA Home Loan?

If you're going to be eligible for one of these loans, your income can't exceed 115% oof the median income for the area of the home. You're going to need a decent credit score, probably over 600. You're going to need to prove that you can make mortgage payments, therefore your debt can't be too high.

No Down Payment - No Closing Cost

It may seem to good to be true, but you might be moving into a new home without any money out of your pocket. USDA loans can be for more than 100% of the homes appraised value. That means your closing costs could be included in the mortgage.

What To Do Now?

You need to contact a USDA Home Loans specialist to understand more. They're up to date on present requirements and upcoming changes. They can help you decide if you're eligible and loan amount.