For many Americans, buying a home is a dream, but often seems impossible to achieve. In the generation plagued by student loan debt, many millennials believe they won’t be able to buy a home because they cannot save for a down payment. However, thanks to the U.S. Department of Agriculture, there is now an option to buy a home with no money down! Our team at GVC Mortgage wants to help your home-buying dream come true, even if you don’t qualify for a traditional mortgage. We’ve spelled it out for you so you can decide if a USDA loan is right for you.
What Is a USDA Loan?
A USDA home loan is a zero down payment mortgage for eligible rural and suburban home buyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture. The program is designed to “improve the economy and quality of life in rural America.” It offers low interest rates and no down payments, and you may be surprised to find just how accessible it is.
How Does the Program Work?
The USDA guarantees a mortgage issued by a participating local lender, such as GVC Mortgage, which allows you to get low mortgage interest rates, even without a down payment. However, because you’re putting little or no money down, you will have to pay a mortgage insurance premium. If you qualify, your mortgage will be much like a traditional mortgage.
How Do I Qualify?
Income limits to qualify for a home loan guarantee vary by location and depend on household size. To find the loan guarantee income limit for the county where you live, consult this USDA map and table. Other eligibility requirements include: U.S. citizenship, a monthly payment that is 29% or less of your monthly income, dependable income, and acceptable credit history.
Additionally, only certain properties qualify for a USDA loan. The program is designed to promote growth in rural areas but that doesn’t mean you have to live on a farm. Check the map and you may discover that you’re able to find a property in an approved area that isn’t too far away from your suburban dreams. Finally, applicants with credit scores of 640 or higher receive streamlined processing; however, it may still be possible to secure a loan with a lower score. Our experienced loan officers are here to help, and are more that willing to answer all of your questions.
Start the Process
If you’re ready to own a home, don’t let your lack of down payment stop you from trying. Your dream home might be within reach! At GVC Mortgage, we’re available to help guide you through any type of loan or refinancing process, including USDA loans, FHA loans, and new builds! We also offer a free consultation, so contact us today at (317) 564-4906 with any questions.