Kevin Pearia from USDA is spreading the word on USDA loans, and how they can HELP buyers in today's market. He contacted us at Dousevicz Real Estate to help in their cause, and asked that we include a write up on our blog. We're happy to help! You may be surprised at the amount of areas in Vermont that actual qualify-- it's not just for the extremely rural areas of our state! You'll find properties that qualify within a short commute to Burlington, South Burlington, Williston, Essex, and many more. Some of these towns even qualify themselves. USDA offers competitive rates, no down payment requirements, and much, much more! Here is the piece from Kevin- Thank you! Why USDA Loans Aren't Just for Farmers The USDA home loan program was originally established to help promote the development of rural areas by providing an easy and affordable mortgage to interested home buyers. Traditionally thought of as a home loan for farmers, the USDA actually provides a variety of loans that can be used for everything from housing to business expansion. The USDA Home Loan, however, has become one of the most popular of the USDA Loans. What are the Benefits of a USDA Home Loan? Contrary to popular belief, USDA home loans aren't just for homes in highly rural areas. Several homes located on the outskirts of major metropolitan area, or in developing areas of already established cities and towns qualify for USDA Loans. Choosing to purchase a home with a USDA loan is highly beneficial to borrowers because of the numerous ways the program reduces out-of-pocket expenses. Conventional lending programs might offer slightly lower interest rates, but they also require high down payments, near perfect credit, and generally high closing fees which can make financing a home almost unaffordable to most. However, USDA loans are 100 percent guaranteed by the government which allows lenders to offer eligible borrowers benefits they would normally be unable to obtain. In addition to flexible loan terms and competitive interest rates, the USDA program makes a home purchase more affordable by: Requiring no down payment Not having loan limits Requiring no private mortgage insurance What if a Single Family Home Loan Isn't for Me? The monthly mortgage of a single family home isn't always affordable, yet safe and comfortable housing is still a need of nearly every family in Vermont. The USDA recognizes this, and offers several programs to help families with lower incomes obtain quality housing. Mutual Self-Help Loans help low-income families build houses by all them to help each other build homes. The Rural Rental Housing makes renting more affordable. There are also several loans available to make the purchasing of land easier. The USDA home loan, and most of its other housing lending programs, has the most lenient eligibility requirements of any government backed lending program currently on the market. Aside from seeking to purchase a home in a USDA-approved area, borrowers must simply be able to afford monthly mortgage payments and not have an income that exceeds the area's median by 115 percent. The USDA home loan program is suited to most individuals seeking to purchase a USDA-deemed rural home. However, lenders will usually require a mid-range credit score of 620 or higher in order to approve the mortgage loan. Even if you have an imperfect credit history or believe that you may not be eligible, interest homebuyers are still encouraged to contact a USDA loan specialist. Kevin Pearia Content Director for USDALoans.com
USDA Loans and Vermont Real Estate- What Can They Offer Buyers?
- By Brad Dousevicz