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If you are a low to middle income family with dreams of buying a home, you may think that is a far-off thought. The U.S. Department of Agriculture may have a loan option that works for you. In June 2018, USDA-eligible areas will be changing slightly. Mortgage Options Inc. can help you find lenders and loans to get your family into a home they will love!
What are USDA Loans?
A USDA home loan is a zero down-payment mortgage for eligible rural and suburban homebuyers. It is especially meant for families with lower incomes who may not be eligible for regular mortgages. This money can be spent to build and refurbish homes or to help finance other loans. It may also be used for essential household equipment, like carpeting, parts of the landscape such as trees or driveways, and in some cases even solar panels or other alternative energy initiatives. Rural areas are determined by population based on information collected by the USDA, so it is always good to check if your area is eligible for a loan, or to choose an area which is.
Do You Qualify?
To qualify for a USDA loan, applicants must be US citizens or a permanent resident, intent on living in the home they are purchasing, as well as meet certain income requirements. The other major requirement is based on geographic location. Since rural areas are based on population density gathered by census data, areas eligible for USDA loans will change from time to time. In June 2018, some areas will no longer be qualified for this mortgage program while others will now be eligible. The map of qualified areas will be available on the USDA website after June 4th. If you are considering applying for the USDA home loan, check the link provided at the end of this blog to see if you are living or buying in the right area.
Mortgage Options Inc. helps families in South Carolina, North Carolina, Tennessee and Georgia find mortgage companies, loans and rates that will help them buy a home. You may think you live in a large town or too far in town to qualify for a rural loan, but that may not be the case! About 97% of the continental U.S is USDA-eligible. The states we service have similar numbers: Georgia with the highest at 96%, North and South Carolina with 95% and Tennessee at 93%. That is the percentage of land which is considered rural and eligible for USDA home loans.
To find out if you are in an area eligible to receive a USDA home loan, click the following link, https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do. This loan is great for lower income families, because it has no down payment and makes mortgages more accessible. To get started applying for a loan, or if you have more questions about mortgage options, contact Mortgage Options Inc. Our experts are here to answer your questions and help you figure out what type of loan would be best for you!