In North Carolina, we get RURAL in a hurry! I mean you can be in an area where you hear Roosters when you wake up, and only have to drive about 25 minutes to your job at the Research Triangle Park! One of the programs that folks in this area are interested in, because it IS available - is the USDA Home Loan that's been specifically designed for those who want to live in a more Rural Area... like Holly Springs, or Wake Forest!
To qualify for the mortgage loan, the home must be inside the "Foot Print" that the USDA Home Loan Program lays out - generally not in a densely populated area like Raleigh or Cary. All of Franklin County, Johnston County and Harnett County qualify - and there are substantial areas in the Wake, Orange and Durham county areas that qualify too. If you know an address for a property you are interested in, you can find out if it qualifies by clicking here.
You also need to have "decent" credit, and meet their Maximum Income Limits. The Maximum Income Limits vary by County. But for the MOST part, in the Wake/Johnston County area a family of 1-4 people the maximum income is $88,400. In Durham County, the maximum income for the family is $82,000.
The most important part of a USDA Mortgage Loan is that it is CHEAPER on a monthly basis, and cheaper in down payment than most any other type of mortgage program available! FHA loans now require 3.5% down payment, and Conventional Loans require 5% down. Both of these programs have a Monthly "PMI" that is required each month that can add a minimum of $82 to a $150,000 loan! Va Loans (available to Veterans) are great - but they have their own form of "PMI" that can be as much as 3% of the loan!
USDA Home Loans are 100% mortgage loans, no downpayment, and they have no monthly "PMI." The overall cost of the "default insurance" or "PMI" or "Guarantee Fee" is a complicated calculation - but equals right at 3.5%. Even though this is up from the 2% they charged prior to 5.27.2010 - it's still a GREAT loan!
If you have questions about a USDA Home Loan, please call Steve and Eleanor Thorne, Professional Mortgage Planners, 919-649-5058
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