Best of all?! You don’t have to be a First Time Home Buyer to qualify for the program! You just can’t own another home, at the time of closing.
What Makes USDA Home Loans So Special?
USDA Home Loans are backed by the U.S. Department of Agriculture, and they’re designed to help more families buy homes in eligible rural and suburban areas. But here’s the good news: even with some changes to the USDA map, there are still plenty of homes near Wilmington, Leland, and Ogden that qualify!
In fact, while some folks were worried about major changes to USDA eligibility maps in the Wilmington NC area, the updates turned out to be pretty minor. As a general rule, homes located inside the city limits of Wilmington are no longer eligible—but that still leaves plenty of neighborhoods where USDA financing works perfectly!
Just look at the maps! The “brown-ish” shaded areas do not qualify. But there’s lots of areas that do!
You can see from these two maps that Rocky Point, Castle Hayne, Boiling Springs, small parts of Leland, Surf City – all qualify for this 100% home loan with no down payment required!
USDA Home Loan Basics for Coastal NC
To qualify for a USDA Home Loans Wilmington NC, here’s what you need to know:
- The home must be in an eligible area (we’ll help you check!)
- A minimum credit score of 600 is required
- There is no maximum USDA Home Loan limit in NC
- USDA underwriters require that you be out of Bankruptcy or foreclosure for 3 years before you can buy a home
- Household income must be under the limit for your family size:
Family of 1–4: $112,450
Family of 5 or more: $148,450
These loans offer zero down payment, which is a huge advantage in today’s market. Plus, the monthly mortgage insurance (PMI) is one of the lowest of any loan program. Compared to FHA loans in Wilmington—which charge much higher PMI rates—the USDA program gives you more buying power with a lower monthly payment.
The USDA Loan Timeline
There’s one thing you need to plan for: USDA home loans take longer to close. While some mortgage programs can be approved in as little as 10 days, USDA loans usually take at least 30 days because they require final review by a USDA underwriter. That’s true no matter which lender you use.
We’re happy to guide you through the process—and if time is tight, we may also suggest looking at the NC First Time Home Buyer Grant. It offers free down payment assistance and works well with USDA loans in our coastal area.
What About Closing Costs?
Many buyers are shocked to learn how affordable it is to close on USDA Home Loans Wilmington NC. In fact, a recent study showed that the average cash to close was just around $6000! That’s a fraction of what you might pay with a conventional or FHA loan. In some cases, closing costs can even be paid by the seller or covered by the NC Home Advantage Assistance Program.
Handling Student Loans with USDA
Got student loan debt? You’re not alone. USDA does treat student loans a little differently than other mortgage programs. Even if your loans are deferred, underwriters will still count 1% of the balance as a monthly payment (unless we can document the actual payment). It’s important to review your loan details early so we can plan around this.
Can I Roll in the USDA PMI?
Absolutely. USDA charges a 2% upfront Guarantee Fee, but you don’t have to pay that out of pocket. Instead, it can be financed into the loan, so if your home costs $200,000, your final loan amount would be $204,000.
There’s also a small annual PMI fee—currently 0.5% of the loan amount. Using that $204,000 example, that’s $1,020 a year, or just $85 per month. It’s a small price to pay for a no-down-payment mortgage!
Ready to Explore USDA Home Loans Wilmington NC?
If you’re shopping for a home near the coast—in Wilmington, Leland, or Ogden—let’s see if a USDA loan is the right fit for you. It could save you thousands at closing and help you move in sooner than you think. USDA Home Loans Wilington NC are also a great way to retire to the BEACH! Give us a call or send a message today to check your eligibility and start the journey toward homeownership Steve and Eleanor Thorne 919 649 5058!
Originally posted at NCFHAExpert.com
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