Do I have to a put a down payment?
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 acquistion cost, whichever is less.
Is everyone eligible for a USDA home mortgage loan?
To be
eligible, applicants must:
* Purchase a primary residence. Investment properties are not allowed
* Have an adequate and dependable
income.
* Be a U.S. Citizen, qualified alien, or be legally admitted to the US for permanant residence.
* Have and adjusted annual
household income that does not exceed the moderate income limit established for the area. Please contact us here at Easy Buy
Homes for details on income limits in your area. Household income includes the total gross income of the applicant, co-applicant
and any other adults in the household. Applicants may be eligible to make certain adjustments to gross income such as annual child
care expenses and $480 for each minor child in order to qualify.
* Have a reasonable credit history.
Does
every home qualify for a USDA home loan?
Homes that qualify:
* New or existing homes.
* Existing homes must be structurally sound, functionally
adequate, and in good repair.
* There are no restrictions on the size or design of the home financed but similar comparable sales will
be required.
* The home must not be used for income-producing purposes.
* Homes must be located in rural areas (many areas around the
outskirts of major metropolitian areas qualify). Contact us to check eligibility.
What is considered a rural area?
Rural areas
include open country and places with a population of 10,000 or less and under certain conditions towns, cities, and outskirts with
between 10,000 and 25,000 residents. Contact us to determine if the area you are looking in can qualify. Most of the counties featured
here on this site are totally eligible.
Are USDA home mortgage loans the same as traditional mortgage loans?
USDA home mortgage
loans are on a 30 year fixed rate term and provide interest rates that are usually equal to or sometimes lower than traditional financing
making it more attractive to home buyers.
Can I refinance my mortgage if it is not a USDA home mortgage?
Not at this time, however,
there is some discussion about opening the program up to non USDA refi's sometime in the near future. As the program is currently
structured only existing USDA loans may refinance into a USDA loan.
Are there any USDA fees?
For puchase loans, a one-time guarantee
fee equal to 2.0 percent of the loan amount is charged. The buyer may finance this charge into the purchase money loan. There is a
0.5 percent charge for refinance transactions. There is never a monthy PMI payment.