Today we wanted to share some information on a loan option that doesn’t get much time in the spotlight – but it has a lot of benefits for the borrowers who qualify.
The USDA Home loan.
This loan program is backed by the U.S. Department of Agriculture and was developed to encourage home ownership and economic development in rural areas. It is available to finance the purchase of properties in rural areas and to help home buyers with average income make the transition from renters to homeowners. The program isn't only for first time buyers - you can use it on your second or third primary home purchase, as long as your financial situation and property meet the program guidelines and requirements.
0% down. Low Interest Rates. Reduced mortgage insurance premiums.
In fact, USDA mortgage rates are often the lowest available – up to a half to three-quarter % below FHA or Conventional mortgage rates. It is important to keep in mind that, mortgage rates are personal and highly dependent on an individuals financial situation and specific purchasing scenario.
Is my home purchase eligible?
To determine the eligibility of a specific property, visit the USDA site and type in the property address.
DON'T wait! NOW is the time to take advantage of this loan option.
USDA eligibility maps are due to be updated! This means that for the time being, some of the local areas that have been developed or grown in population over the past 3-5 years remain eligible until information is received from the 2020 census. Many properties in Flagler county, Flagler beach, West Route 40 and along Route 1 still remain eligible.
USDA Loan Highlights:
Zero % Down
Low Fixed Interest Rate
Reduced Mortgage Insurance
Closing costs can be financed into the loan
No repayment penalty
First Time Buyer or Repeat home buyer are both eligible
Low cost streamline refinance available
No set limit on loan amount - but borrower(s) must be able to qualify (while remaining under income limit)
Guidelines & Requirements:
Property must be in a qualified “rural” area (Visit our website for the map or to search an address)
Household income can't be greater than $90,300 for a family of 1-4 or $119,200 for a family of 5-8 (higher cost areas may have higher limits - see chart here)
Purchase must be used as a Primary Residence
Proof of steady job and Income required
Funding fee is 1%
MI is 0.35%annually
Could a USDA loan be the best mortgage for your home purchase?
Give the local mortgage experts at Simplicity a call today 386-401-9000 to discuss your financing options!
For more information on USDA Loans - check out our site www.SimMortgage.com/usda
Simplicity Mortgage is a local mortgage broker company located on 411 Dunlawton Avenue in Port Orange, Florida. We serve borrowers looking for loans in the central Florida area to include Volusia and Flagler counties, Palm Coast, Ormond Beach, Ormond by the Sea, Deland, Daytona Beach, Daytona Beach Shores, Port Orange, Ponce Inlet, New Smyrna Beach and all surrounding areas. We have a portfolio of 20 lenders, which allow us to find the best home loan product for a borrowers unique purchasing scenario. Our mission is to provide a simple and smooth customer experience coupled with an excellent rate and low fees. We are your accessible, single point of contact throughout the process. We offer a full suite of loan products: Conventional, VA loan, FHA loan, USDA, Jumbo, Non Qualified Mortgage (non-QM), Self Employed, 1099, first time home buyer, investment, and secondary property purchases. We have excellent options for your refinance as well, IRRRL, Home Equity Loan, Streamline Refinance, Cash Out, Rate and Term. Give us a call today to discuss current mortgage rates. We will utilize our mortgage calculator to assess the mortgage payment with various mortgage rates for your home loan to help you determine the best financial fit for your purchase.