What is a USDA Home Loan or a Rural Development Home Loan?
USDA stands for United States Department of Agriculture. A USDA loan is an insured home mortgage loan at a low cost. A USDA mortgage loan is one of the few remaining loans that allows you to purchase a home with no down payment. You do NOT have to be a first time home-buyer to qualify. Apply now. First Portland Mortgage Corp prefers that you have credit scores of 660 or more, however we currently offer USDA loans with credit scores as low as 620. If you are not sure what your credit rating is, First Portland Mortgage can offer assistance in wading through the mortgage process. First Portland Mortgage Corp. offers high customer service and quick processing as well as LOW mortgage rates for Maine (and New Hampshire). Call us at 1-800-370-5222 ext. 24 or e-mail us now.
What Types of Loans does USDA offer in Maine?
There two kinds of USDA mortgage loans available in Maine. First Portland Mortgage Corp. can process and close a Guaranteed Rural Housing Loan for you. The loan allows for higher income limits up to 115% of median household income for your area and 100% financing is available. You can e-mail us at Kristeen@firstportland.com or visit our website to apply at any time at www.firstportland.com. The other is a Direct Rural Housing Loan. You must contact the USDA directly for this loan. The Direct Rural Housing Loan is only for those that have annual income under the LOW INCOME limits. Visit their website at www.rurdev.usda.gov/me. Both loan types are fixed rate loans.
Am I eligible for an USDA Loan in Maine?
YOU DO NOT HAVE TO BE A FIRST TIME HOME-BUYER! To be eligible for an USDA Rural Housing Loan in Maine, you must meet some the following criteria.
- INCOME: Your annual household income can't exceed the limits for your area. Visit the USDA site for these limits. Even if only one working member of the household will be considered on the loan, all household income is considered in determining if your income is below the limit.
- RATIOS: Your monthly housing payment and costs (principal and interest, real estate taxes, insurance and condo fees) must not exceed 29% of your gross monthly income. With good credit (over 680), our automated underwriting systems will often allow monthly housing payments up to 35% of your gross monthly income. Your housing costs plus all other debt (like student loans, auto loans, credit card payments) must not exceed 41% of your gross monthly income, although our automated underwriting systems will often allow up to 45% of your income for all the debts.
- CREDIT: Your credit background is important. At least a 620 credit score is required to obtain an USDA mortgage approval through First Portland Mortgage Corp.
- APPRAISAL: The home that you wish to purchase must be a single family home or a brand new manufactured home. First Portland Mortgage only offers mortgages on single family stick built homes and double wide manufactured homes. The home must meet HUD (FHA) guidelines although those guidelines have become less strict in the last several years. If repairs need to be made, they can be done before... or after closing, depending on what type of repair it might be.
- DOWN PAYMENT: USDA Mortgage loans do not require a down payment.
- OCCUPANCY: You must live in the home. You must not own another home at the time of closing.
Some towns are not eligible for USDA Rural Development Loans. Other loans are available in the following towns:
- Portland Maine Home Loans
- South Portland Maine Home Loans
Some towns are partially eligible for USDA Rural Development Loans.
- Biddeford Maine Home Loans
- Westbrook Maine Home Loans
- Bangor Maine Home Loans
- Lewiston Maine Home Loans
- Auburn Maine Home Loans.
How much can I borrow in Maine?
Unlike FHA loans, there is no maximum loan amount allowed for a USDA Rural Housing Loan. Your income, current debt and real estate taxes will determine your maximum loan amount. Income limits for your area can be found at below. You can borrow up to 104% of the lower of the price or value of the single family home. The extra 4% can be sued for closing costs or repairs to the home. You can also finance the USDA loan guarantee fee on top of that. Complete our on-line application today at http://www.firstportland.com/ to see if you qualify.
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