USDA Loans – They’re Not Just For Rural Homes

A USDA Loan is a Government insured loan that allows a home buyer to purchase a home with NO money down. USDA Loans are offered in rural and semi rural areas and are a great option for first time home buyers.  USDA Loans due have income limitations depending on where you live.

Under USDA loan guidelines, the purchaser can borrow up to 100% of the appraised value of the home or purchase price, whichever is less.  This obviously eliminates the need for a down payment. Since coming up with a down payment which is usually in the thousands of dollars, can be a major barrier to home ownership, The USDA program can be a savior.

USDA Loan Guidelines

To be eligible for a USDA Guarantee Loan program, you should meet certain parameters:

You should have steady and dependable income.

Be a U.S. citizen, resident alien or have legal permanent residence.

Must meet adjusted income guidelines for county you plan to buy in.

Meet minimum credit history requirements.

Meet acceptable income to debt requirements.

Home must be in designated area of USDA housing.