USDA Loans: Affordable Financing
If you’re interested in purchasing a home in a rural or suburban area, you may want to consider a USDA loan. These nonconventional loans are funded by private lenders but insured by the U.S. Department of Agriculture (USDA). Because they’re backed by the USDA, they are minimal risk to lenders, which means lenders open their doors to more clients who may not qualify for conventional financing. They’re available to low- and moderate-income borrowers, and they have great benefits like no required down payment. If you live in Fairfield, Stamford, Norwalk, Trumbull or nearby Connecticut, contact Prosper First Funding Corporation – Nima Rezvan to learn more about USDA loans.
USDA Loan Basics
There are a few types of loans and grants the USDA provides. The one we’ll discuss here is the Single-Family Housing Guaranteed Loan Program. Benefits include:
- Flexible credit guidelines
- A wide range of terms, from 15-30 years
- Competitive interest rates
- No required down payment
USDA Loan Eligibility
Before you learn more about USDA loans, it’s important to understand eligibility requirements. There are income limitations for households of different sizes; borrowers must not have an income that exceeds the “moderate income” limit. In Stamford and Norwalk, the limits are:
- $131,250 for a one- to four-person household
- $173,250 for a five- to eight-person household
There are no limits on how much you can borrow with a USDA loan, but you will need to show documentation that shows you can afford your mortgage and other expenses. In addition to eligibility requirements, there are some other requirements to make note of.
You must agree to live in your home as your primary residence. You must be a U.S. Citizen, non-citizen national or Qualified Alien. You must not have been suspended or removed from participation in other federal programs. You must show that you have the willingness and ability to make your mortgage payments and other homeowners’ expenses.
USDA Property Eligibility
Any property financed with a USDA loan must undergo an appraisal by a USDA-approved appraiser. Homes must be in designated rural and suburban areas You can use a USDA loan to purchase an existing property, purchase a site with a new or existing dwelling, to purchase and repair a home in need of rehabilitation, to make a home accessible, to make energy improvements to a home, to install utilities, and more.
Take the First Step Today
When you’re ready to learn more about USDA loans, Prosper First Funding Corporation – Nima Rezvan is here to help. Nima is a skilled, USDA-approved mortgage professional who can show you this and other types of nonconventional and conventional financing options to make the best choice. If you’re interested in purchasing a home in rural or suburban areas in or around Fairfield, Stamford, Norwalk, Trumbull, call us to get started.