• No Down Payment: USDA loans typically require no down payment, making them a great option for first-time homebuyers or those without substantial savings.
• Low Monthly Payments: With lower interest rates and the possibility of no down payment, monthly payments are often more affordable than traditional mortgage loans.
• Mortgage Insurance: USDA loans require both an upfront and monthly mortgage insurance fee, but the total costs can still be competitive compared to other loan types.

Eligible Property Types:

• Single-family Homes: Most common type of property eligible for USDA loans.
• Townhouses and Condominiums: Certain townhomes and condos may be eligible if they meet USDA standards.
• New Construction: Homes built to USDA standards may be eligible for financing.
• Manufactured Homes: Eligible if they are on a permanent foundation and meet specific USDA requirements.

Eligibility for USDA Loans:

• Location: The property must be in a USDA-designated rural area. You can check eligibility here.
• Income Limits: Income limits are based on household size and location, typically set at 115% of the median income for the area.
• Primary Residence: The home must be your primary residence.

Common Types of USDA Loans:

• Single Family Direct Home Loans: For low-income borrowers to purchase a home.
• Single Family Guaranteed Home Loans: For moderate-income borrowers to purchase a home with a USDA-approved lender.

Benefits of USDA Loans:

• No Down Payment: USDA loans offer 100% financing, meaning no down payment is required.
• Competitive Interest Rates: USDA loans often come with lower rates compared to conventional loans.
• Flexible Credit Requirements: Easier qualification with lenient credit standards.

Common Misconceptions:

• You must live in a farm: USDA loans are not just for farmers; they are available for rural and suburban homebuyers.
• Income limits are too low: Many potential borrowers qualify for USDA loans even with higher incomes, depending on location and family size.
• USDA loans take too long to close: While USDA loans may take slightly longer than conventional loans, they are still a quick and viable option for qualified borrowers.

To learn more about USDA loans or to determine if you qualify, contact Steven Batista at Legacy Mortgage Group Inc. who is your experienced loan officer today.  For more information, check eligibility and explore your USDA loan options today!