I recently sat down with Cheryl Ellington of TowneBank Mortgage of the Carolinas to get a little insight on the ever growing concept of USDA loans. Many of you have probably heard of the term USDA, but were not sure about the details of their program or if the homes that interests you qualify.
Highlights of the USDA Guaranteed Rural Housing Loan Program
- Loans may be for up to 100 percent (102 percent
if the guarantee fee is included in the
loan) of appraised value or for the acquisition
cost, whichever is less.
- No downpayment is required
- There are no restrictions on the size or design of the home financed
- There are income restrictions to individuals and family for USDA loans
- There is an automated income eligibility calculator at: http://eligibility.sc.egov.usda.gov.
- The home must be located within a search area to qualify for USDA financing. Go to this website to see if the home you are searching for is eligible for a USDA loan.
- Guarenteed loans can be made on either new or existing homes
- Mortgages are 30-year fixed rate at market interest rates
- Loans may include funds for closing costs, if the appraised value is higher than the sales price
- Sellers may contribute to the buyer’s closing costs
- Buyers must personally occupy the dwelling following the purchase
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