A USDA home loan from the USDA loan program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture. This type of loan has the ability to help people purchase a home who would otherwise not be able to qualify for a conventional loan. Of the many benefits, the most noted is the ability to obtain one hundred percent financing. This means qualified borrowers can purchase a home with no out of pocket cost. Below are the top five benefits of having a USDA mortgage loan.
1. No down payment required
2. Low monthly private mortgage insurance
3. Flexible credit guidelines
4. Competitive fixed interest rates
5. Ability to finance upfront mortgage insurance and closing costs
So, the next question you may ask, well who is eligible for the USDA loan? First, any individual or family who plans to occupy a home located in an eligible rural area as their primary residence may qualify for a USDA mortgage loan. Grove City, Pennsylvania is considered a rural area, so we have you covered there. Second, when applying you must provide sufficient income verification and have a credit history that has indicated the ability and willingness to meet the repayment obligations. Third, you have to fall within the income guidelines. USDA mortgage loans are catered to the low to average income borrower, there is an income limit to qualify.
Below is the link to the USDA government site to help you learn more and possibly get a pre-approval. Please call Grove City Realty if you have any questions, we help buyers work with lenders every day. Let us help you find the home of your dreams!