USDA loan program – When people think of the USDA, the first thing that usually comes to mind is agriculture and food, not housing. However, the United States Department of Agriculture (USDA) plays a big role in the housing industry. It promotes the development of rural areas around the nation by providing a guaranteed loan program (USDA mortgage programs) to first time and repeat / move up home buyers who seek to purchase homes in qualifying USDA rural areas. The USDA loan program provides home ownership opportunities to low and moderate income rural Americans through several loan, grant, and loan guarantee programs. USDA also makes funding available to individuals to finance vital improvements necessary to make their homes decent, safe, and sanitary.
You don’t have to go far in and around Charlotte to find eligible USDA areas. Some areas in zip code 28214 and 28215 qualify for this program. Many other areas do qualify as shown on the USDA eligible areas map. The USDA loan program is available in Mecklenburg, Union, Gaston, Iredell, Cabarrus and Stanly counties.
USDA and VA loans are the only government-insured down payment assistance programs that offers offering a true zero money down option to purchase a home. A conventional loan can require as much as 20% down, while a FHA loan only requires 3.5% down and USDA…well no money down. Using a USDA guaranteed loan, a home buyer can save thousands of dollars in upfront costs by financing the full purchase price of a home and still get a 30-year fixed rate loan. There is also no PMI (private mortgage insurance), but there is a USDA fee to use the program. For many first time home buyers who are strapped for cash, this program opens the door to home ownership. Not all applicants qualify to this program, but most do.
Homes that qualify for the USDA loan program are often called USDA properties or USDA homes. Homes that qualify for the USDA program can be existing, new or proposed constructions that are stick built, modular, townhouses, condominiums and manufactured homes (only if new). Existing homes must meet certain certain building code requirements established under HUD. If the selected home is on well water, the water quality must meet local and state code. There is no stated purchase price limit, but how much of a home can be bought with this program depends on the applicant debt to income ratio and how much the lender is willing the lend to the applicant.
Whether you’d like buy a home or sell your home, we’d love to help you. We respond to all inquiries quickly. Simply fill out the form below with all your details or for immediate assistance, call our office today at (704) 837-4672. For office visits, an appointment is required. We are a Charlotte-based real estate company that provides assistance to home buyers and sellers in the Charlotte NC region.
Cornerstone Realty Carolinas is Real Estate Company serving the metro Charlotte NC area. We work with individuals, families and investors who are interested in buying or selling real estate in the Charlotte region and anywhere in North Carolina.
The down payment assistance programs discussed in this website are based on a 30-year fixed rate loan. Interest rate is the current market rate. Please call for details.
The information contained herein this website is not meant to replace the market knowledge and expertise we provide as local real estate professionals. For expert guidance with buying or selling your home, please call Cornerstone Realty Carolinas today at (704) 837-4672.
Your inquiry will be answered by a Realtor® licensed to practice real estate in North and South Carolina.
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