Zero-Down Home Financing for the Rural Homebuyer

Real Estate Podcast with Patrick Fitzgerald

Today we’re going to take a closer look at USDA home loans and the benefits they bring to homebuyers. A USDA home loan is a loan guaranteed by the U.S. Department of Agriculture. It doesn’t work everywhere, however—the purpose the of the program is to help with financing homes in rural areas. You will not get approved for this loan inside a city with a population of more than 25,000. As a type of conventional loan, the USDA loan uses a conventional appraisal. Similar to the VA loan, it doesn’t require a down payment at all. The borrower must have a 620 credit score (at least with my company), and there will be a small private mortgage insurance amount that you will be expected to pay. “The USDA home loan program is a great product if used properly.” For all USDA home loans, there is a maximum family income. This varies based on the location of the home, which is why you need to make sure to check with your loan officer. For example, in the San Antonio area, the maximum income for a family of four cannot exceed $82,700 in order to be eligible for the USDA loan. Of course, larger families have higher maximum incomes. The USDA home loan program is a great product if used properly, and it has helped many families in less populous areas in the nation. To find out if a home you are looking at qualifies for a USDA loan, you can go here. If you have any questions about it, feel free to reach out to me. I’d be happy to help you.