When it comes to mortgages, there are a lot of options to sort out. When I am working with clients, they often ask me about mortgage rates and down payments, and the answer can vary.
In Part 1 of the series, we examined FHA mortgages. In Part 2, we took a look at Conventional Mortgages. Part 3 examined VA Loans. In Part 4, we will look at USDA Loans- the lending criteria and the Pros and Cons. This is meant to be an overview - a licensed Loan Officer will help you examine all of the options more closely to help you determine the right choice for you.
USDA: USDA, or United States Department of Agriculture loans can be used by anyone who purchases a property in a qualifying rural development area. This is determined per census track, based on population. There is also an income eligibility requirement.
Minimum Down Payment: 0%!! This is another one of the few NO MONEY DOWN loans available nowadays.
Mortgage Insurance: Required.
Minimum Credit Score: 640
Ownership Types: Primary residence only.
Property Type: Singe Family, Townhomes.
Maximum Loan Amount: Varies by county. Check with the USDA website (click this link).
Pros: 0 Down, low monthly mortgage insurance, low rates.
Cons: Customer must meet maximum income and loan amount guidelines, property must be in a qualifying area, loan will have USDA funding fee added to the loan amount.
Also to Note: They will not lend on anything that could be income producing, and you cannot currently own a home. While you do not need to be a first time homebuyer, you must currently be a renter who does not own a home.
Want to live in your dream neighborhood for $0 down? Call me at 720-341-5235 to find out what's available in Henderson, Thornton, Northglenn, Broomfield, and Westminster!
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