Why You Should Consider a USDA Mortgage

Although it is certainly not new, the USDA Rural Housing Loan program may be one of the most overlooked opportunities available to prospective home buyers. Established in 1949 by the US Department of Agriculture, its goal is to give residents of more rural areas the opportunity to own a home with a -0- down payment. There are certain eligibility requirements for both the borrower and the property: First, borrowers must meet certain income, credit and employment requirements; and, Second, the home must lie within the USDA’s Property Eligibility Map. The main reasons to consider a USDA loan are:

  1. Rural does not mean “remote”. Population is the determining factor as to qualifying the property location for USDA lending. A quick check with the USDA’s website will allow you to track down homes that meet the USDA guidelines. 
  2. The greatest affordability. USDA financing is one of the only mortgages available that offers zero money down payment. And, monthly payments are kept affordable, thanks to the fact that the loans are 30-year fixed rate mortgages at attractive interest rates.
  3. More borrowers are eligible than ever before. As part of the American Recovery and Reinvestment Act that came about in 2009, the guidelines for USDA home loans have become more streamlined and opened the door to qualify more prospective home buyers. Borrowers must meet certain income requirements and exhibit acceptable credit .

To learn more about USDA Rural Housing loans and to discuss your home purchase plans, contact a Mackinac loan officer.