The USDA Rural Department, in order to promote and improve the style of life in rural areas across the US, has established a type of loan for homebuyers considered low in income.
What is so neat about this type of loan is that there is no down payment required! Funds can be used to purchase, build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. The home being purchased or renovated must be in an approved zip code area, obviously in a rural area. Many of the areas in Northwest Florida qualify as rural areas. Such as in Pensacola in Escambia county north of 10 mile road and west of 8 mile creek. Also all of Santa Rosa county qualify with the exception of Gulf Breeze proper.
Learn more about this type of loan quickly by reading below:
*The USDA Loan is a 30 year loan.
* A USDA loan allows you to finance in your closing costs up to the appraised value. Making the USDA loan the only mortgage on the market with this ability.
*Interest rates are competitive and fixed for this type of loan. To ensure that monthly payments don't ever increase.
*Applicants for a USDA loan are typically approved if they have a middle credit score of at least 620 and are able to demonstrate repayment ability. If you are close to 620, it is recomended to try anyway.
*If you are currently renting a home, being able to document those rental payments is a plus.
*Applicants will have to provide proof of income for the last two years in the form of W-2′s or tax returns along with 30 days of their most recent pay stubs.
To learn more about the USDA Rural Housing Loan, contact us, we are waiting on standby to help. Much of the area that we cover is USDA approved. We are happy to send you listings that would qualify for this type of loan.