USDA 100% Financing Home Loans

When most people think of USDA, they may end up think about meat or vegetables. At Mortgage Solutions of Georgia, when we hear USDA, we think about one of the best loan products available to purchase a home in a rural area. USDA Home Loans provide up to 100% financing for a home purchase or refinance. These loans are guaranteed by the USDA and are serviced by direct lenders that are required to meet federal guidelines. There are many qualifying factors for a USDA home loan. These include area the home is located in, credit history, income limits and family size. It is imperative to work with a knowledgeable loan officer that can make sure all qualifications are met prior to applying for these loans.

USDA 100% Financing Home Loans Background Information

There are two basic USDA loans used to purchase homes in rural areas in Georgia. Those are the Direct and Guaranteed loans. The Direct loans are completed by working directly with the regional USDA office assigned to the area you are working to purchase a home in. the Guaranteed program is offered by approved, third party lenders who originate and service the loans. Both loans are only for use for homes that are located areas termed rural and both have specific income limitations based on the family size and county median income limits. To verify home qualifications based on location and income limits, you can visit USDA’s website to review eligibility. At http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do anyone can input the data for a specific home or specific income scenario to find out if the basic guidelines are met without any type of registration requirement. USDA guidelines for credit and property appraisal are very similar to those used to qualify for FHA home loans. Borrowers must reflect an ability to repay based on credit history and homes must be generally in safe living condition.

Benefits to Utilizing USDA loans to Buy a Home

  • 100% financing available-no down payment required
  • Able to finance USDA’s upfront funding fee into the loan
  • The lowest monthly MI (mortgage insurance) requirement compared to other products
  • USDA allows lenders to offer great terms without requiring exceptional credit
  • There are no prepayment penalties
  • 30 year fixed rate terms
  • Property must meet minimal standards-piece of mind for buyers
  • All closing costs can be paid by sellers or financed into loan-depending on appraised value

Benefits to utilizing USDA loans to refinance

  • Can be completed without new appraisal
  • Can be completed with limited documentation
  • Must meet tangible benefits for client-assures refinance makes financial sense
  • Available only to current USDA loan holders
  • Allows lenders to offer favorable terms to clients with less than perfect credit

Mortgage Solutions of Georgia has been helping clients close USDA loans in Georgia for years. We know the property and income guidelines that apply to each situation and home. We look forward to helping you determine if the USDA home loan program is the right program for next home purchase. Call us and let our knowledge work for you.