USDA Home Loans Rock The Triangle!

Mortgage and Lending with Equity Resources

In the Triangle, we are lucky to have such a large area that qualifies for USDA financing on mortgage This Home Qualifies for USDA Financing!loans!  This program offers a 100% loan for homebuyers who qualify with properties located in the more "rural" parts of the area!

Does that mean it's just for a FARM?  Oh NO!  This is for your home, not for income producing farms.  The loans do have a guarantee fee of @ 3.5%.  This means that if you purchase a home for $100,000 (I only use this example since I can do this math in my head) then you will have an additional fee of $3500 added to your loan.  The total loan will be $103,500- which means that you will owe more on the home than you paid for it when you close.  Because of this, I think there are a few important things you should consider:

  • Are you working with an Agent to get a really good deal on the home?  This is not the time to be an amateur buyer!  It's time to pull the experts in to purchase a great home!  (If you are not hooked up with a great Realtor in the Triangle, let us know and we'll refer you!) Since you are going into the property owing more than you paid for it, you want to get a great deal!
  • Are you buying a "fixer upper" or a foreclosed property? There are programs designed for purchasing a previously foreclosed property that needs some repairs (Click here for details), but that's not what USDA is designed for.  This is JMHO, but if the property just needs some updating, that's one thing... but if the roof needs to be replaced this year, and the carpet is worn thin - I would not want a USDA loan on that home.  
  • You need to have DECENT credit, but we can do loans for folks with credit scores less than 620 - especially if there are off-setting factors, like you graduated from college, or have a decent 401K savings amount!  Again, just my $.02 worth - but if you are already on shaky ground... this might not be the time to go into a 100% mortgage!

The qualifying incomes vary per county, and the property eligibility varies by address, however we've put together some basic information on USDA loan in the Triangle (just click the links for each county):

This home qualifies for USDAWake County:  We have maps for Apex, Holly Springs and Wake Forest.  In general, all of Fuquay Varina, Wendell and Zebulon qualify for this financing.  The maximum income for 2 people in the household is $68,900.

Johnston County:  In general, all properties in Johnston County Qualify for USDA financing.  Click the link to get maximum income requirements.  For a USDA home loan, you need to have decent credit.  The minimum credit score is generally at 620, although exceptions are granted on a regular basis.

Durham County:  Probably has the least amount of real estate that qualifies for USDA Home Loans, however, there are some very desirable spots near Briar Creek and Northern Durham County that qualify.  The Maximum income limits in Durham County are lower than Wake and Johnston County (of course their FHA maximum loan limit is higher!)

Orange County:  I was surprised when I looked at the maps for Orange County!  Most of the county qualifies!  Okay - so downtown Carrboro doesn't qualify, and neither does Chapel Hill - but most of the rest of the county does!  Click on the link for a map and to see the maximum income limits.Great Home in Holly Springs!

As I write this, mortgage rates for this program are VERY reasonable.  A USDA (depending on credit scores and when you are closing) could easily have a rate of 4.75% to 5.0%!  So - if you purchased this house (which has almost 1820 square feet and has a garage!) in Holly Springs, for $192,000... your principal and interest payment could be $1036.61!  With TOTAL monthly payments under $1250 a month - you would probably SAVE money by purchasing this home!  The TAX Advantages are HUGE!

If you are considering a new home in the Triangle, and you think USDA might be a great program for you... call us.  Right now many lenders are saying they will only do them:

"Subject to Congressional Allocation of Funds"  The USDA program does not Currently have money...

We have several lenders who are not letting Congress get in the way of closing on these homes - so Call Steve and Eleanor Thorne, USDA Mortgage Loan Experts 919-649-5058  If you are looking for a home that's not mentioned in this post, click here for a list of counties that qualifies for USDA Home Loan financing in NC.


Re-Blogged 1 time:

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Keller Williams 'Rainers
EXIT Realty is GROWING...not multi-level...not profit sharing
Posts to Localism
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usda loans fuquay varina
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Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

I have never had a client apply for a USDA loan but since Charlotte is not that different from your area I imagine we have areas that would qualify as well.  Thanks for the interesting info!

Jan 26, 2009 06:40 AM #1
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Great post Eleanor. You always have the best explanations of this program.

Jan 26, 2009 06:47 AM #2
Carol Smith
Casmi Photography - Mebane, NC

Terrific post, Eleanor.  So many people don't understand the USDA program and are of the belief that if it doesn't involved acreage and active farming then they can't apply.  But sometimes I think that while these programs are available, the powers that be don't really want the public to know about them, thus they save some money.

Jan 26, 2009 07:34 AM #3
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Eleanor, I am a huge fan of the "farmers home loan". There was a time, about 14 years ago, when this was the loan of choice in my market area. Then the subprime 100% financing came along and I didn't see one of these loans in years. Now they are making a very strong and well deserved come back. Very good loan product.

And don't forget the buyer can put 6% in closing costs on top of the purchase price.

Jan 26, 2009 08:01 AM #4
Eleanor Thorne
Equity Resources - Cary, NC
Equity Resources 919-649-5058

Broker Bryant!  FORGOT that's what they use to be called!  Thanks!

Jan 26, 2009 11:16 AM #5
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

It is a great loan for buyers that can qualify and it is in an area that is approved. I haven't used it much in the past but will be more aware of it in the future.

Jan 26, 2009 02:06 PM #6
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495


My first home purchase in the early 70's was through the Farmers Home Administration.  Broker Bryant and I are so much older than you and Steve; it's okay that we know what they used to be called, and you youngsters don't!  LOL

Mike in Tucson

Jan 26, 2009 09:39 PM #7
Stanton Homes
Stanton Homes - New Home Builder - Raleigh, NC
Design/Build Custom Home Builder in North Carolina

Boy, add first time homebuyers to this deal with the $7500 tax credit, and how can you NOT purchase!  There are many, many properties that qualify, particularly those in the first time buyer budget range.  GREAT INFORMATION!

Jan 26, 2009 11:21 PM #8
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC

You do a great job of educating--so many people are not aware of the FHA loans and all the advantages of them.

Jan 26, 2009 11:53 PM #9
Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate

thanks Eleanor - you keep us up to date on info in our area and great ways for us to help our buyers.  I agree with Penny - 1st time home buyers - IT'S TIME TO BUY... NOW!!!

Jan 27, 2009 08:47 AM #10
Leesa Finley
RED Properties - Wake Forest, NC
RED Properties - Raleigh NC Real Estate

thanks for this!  You have taught me so much about this program already and I am advertising the heck out of it!

Jan 27, 2009 11:10 PM #11
Karen Cooper
Karen Cooper | Sr Retail Loan Originator ! NMLS # 223305 | 360 Mortgage Group LLC Austin Texas - Leander, TX
Helping Homeowners w/Home Loans in 27 US States

Hi Eleanor - I agree that this is a fabulous loan program. Glad you have many areas where your clients can take advantage of it, and lenders willing to continue funding these loans while congress figures things out.

Jan 28, 2009 06:22 AM #12
Gerry Suarez Jr.
Jet Home Loans NMLS 1660135 - Maitland, FL
FL Mortgage Guru

Great synopsis of a great loan program Eleanor, but do note there is NO limit of what the seller can contribute as long as it's "reasonable". I've had deals where the seller contributed over 6% on low purchase prices and that saved the deals.

I do encourage you to post this in Rural Development Loan Group here in AR. This information needs to be heard!

Gerry Suarez, Jr.

Your FHA Loan Pro!

Feb 04, 2009 02:24 AM #13
. 4Terra Land Brokers .. 828-776-0779 Asheville NC
What's Most Important to YOU? Call(828)-776-0779


Here is yet another example of why I subscribe to your BLOG. This post sums up information our clients can REALLY use . THX!!!

May 02, 2009 12:03 AM #14
Terry Bakowski

Hey, any updates this month about USDA mortgage rates? and anything else
you might have info on?
Thanks, Happy Spring

Terry B

Apr 11, 2016 07:55 AM #15
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Eleanor Thorne

Equity Resources 919-649-5058
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