It is a surprise to many that the USDA (US Department of Agriculture) provides home loans. They are applicable in designated non-metropolitan towns and have great terms and features. This blog provides MA USDA home loan options.
MA USDA Home Loan Options
USDA Mortgage Advantages
- The mortgage is offered by local designated lenders.
- 100% financing is available.
- Both new purchases and refinances qualify.
- The mortgage is not merely for farms. It may apply to standard residential properties outside of major cities.
- It can be used for single family and multi-family homes.
- It is possible to roll in the cost of various repairs.
Areas are approved based on zip code. Home buyers might be pleased to find specific areas on this list as many are not as remote as imagined. To check eligibility for MA and other areas, visit the USDA Loan website at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do and click on either single family or multi-family in the Property Eligibility menu on the left. You will be prompted to enter a state and zip code to display a color coded map.
USDA criteria are almost the same as FHA financing criteria. Buyers must have sufficient credit scores, stable earnings, and the capability to repay the mortgage. Income limits (listed at http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state&NavKey=income@11) vary by state, county and size of your household. USDA mortgages may take more time to process than conventional loans. Ask a USDA mortgage professional about applicable time and remember it when entering a settlement date in your offer.
Resources to Help with the USDA Process
Select a reputable local bank that is authorized to provide USDA loans. Your real estate broker may be able to give you a list. Request a pre-approval early and understand the requirements and options before submitting a contract on properties. Contact Bradford Pratt at 877-481-5544 or firstname.lastname@example.org for up to date MA USDA home loan options.