Low Down Payments

If you’re looking for an affordable mortgage that’s actually obtainable don’t overlook a USDA Rural Development Loan. They’re one of the few ways you can still get a zero down payment home loan, outside of the VA program for our military veterans. To go along with no down payment, USDA Loans also carry interest rates comparable to conventional mortgages. There’s no private mortgage insurance required, although you do have to pay an annual fee equal to 0.3% of the loan balance. This is quite a bit less than you’d have to pay for PMI on a conventional loan with less than 20% down. By comparison, FHA requires a 3.5% down payment and its annual fee is 1.10-1.15% on 30 year loans. As the name implies USDA Rural Development Mortgages are limited to home purchases in rural areas. However, the definition of rural is fairly broad- it includes small towns and the outlying areas of many small-to-midsized cities, so you don’t have to live in the sticks to qualify. USDA loans are also limited to people with low and moderate incomes, but those limits vary depending on where you live. The general rule is the household income cannot exceed 115% of the median income for your area, other things can factor in and raise that limit such as kids under 18. There isn’t a specific limit on the amount you can barrow. However, typically speaking you can get approved for three times your annual income before taxes. Does all of this sound good to you? Let’s get you on the phone with one of our USDA specialist and pre-approved today! J

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