Buying a Property Using a USDA Loan

Buying a Property Using a USDA Loan

Have you decided that you are ready to purchase a property, and are interested in living in a more suburban or rural setting? USDA loans are one type of financing option that offer several benefits for home buyers who are interested in buying a home in a lower populated area. If you are interested in buying a property in Mount Pleasant, South Carolina, and want to better understand your home financing options, Lucey Mortgage Corporation can help. Read on to learn more about financing a home with a USDA loan.

What Are USDA Loans?

1072USDA loans are low interest mortgages with a zero down payment that are available for certain rural or suburban home buyers. USDA loans are considered non-conventional loans because they are insured by the federal government, (through the United States Department of Agriculture), and were initially developed in order to help improve the economy and enhance the rural quality of life. Since this mortgage is backed by the USDA, lenders are able to offer loans to borrowers who have lower credit because the USDA guarantees a portion of the loan in the event that a borrower is unable to make mortgage payments. USDA loans are intended to help families with low to moderate incomes afford a home, and can be used to help finance the construction of a new home, buy a home that was recently constructed, or purchase an older home. USDA loans are an excellent financing option for borrowers because they are widely available, do not require a down payment, have lower mortgage rates, and have reduced mortgage insurance premiums.

Advantages To Obtaining a USDA Loan

In addition to making home ownership more affordable, USDA loans offer several advantages, including:

  • Low interest rates and low loan costs
  • A 0% down payment
  • Flexible credit requirements
  • Lower private mortgage insurance (PMI) fees, including the ability to finance PMI

Qualifying For a USDA Loan

Qualifying for a USDA loan will vary according to your location, and will also depend on your household size and income level. The following is a list of common requirements that must be met in order to qualify for a USDA loan:

  • The buyer must be a United States citizen
  • The prospective home must be located in a USDA eligible lending area
  • You must be able to verify consistent income, typically from the past 24 months
  • A monthly payment of 29% or less of your monthly income will be required
  • A credit score of 640 higher will be required

Applying For a USDA Loan

If you are interested in purchasing a home in a more suburban or rural area near Mount Pleasant, South Carolina, contact Lucey Mortgage Corporation to help you determine if you are eligible for a USDA loan. Contact our office today for a consultation.

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Lucey Mortgage Corporation
861 Coleman Blvd
Mount Pleasant, SC 29464

Phone:
843-224-3650
EFax:
888-534-8868

Hours:
MON-THURS 8:30 AM - 5:00 PM
FRI by Appointment