FIRST TIME HOME BUYERS

Benefits of USDA Loans

• 100% Financing - you can buy a home with no money down. You can even finance your closing costs.

• You can refinance your home up to 100% of the value of your home.

• Low Fixed Rate Mortgage Options.

• They are usually easier to get because the Government insures the loan so that there is much less risk to the lender.

• They can be used for Existing Homes, Foreclosures or New Construction.

• Simple Loan Process.

• No Loan Limit. No Acreage Limit.

• There is No Prepayment Penalty.

• You can use the loan to repair or add on to your home.

• Flexible Credit Requirements.

WHO IS ELIGIBLE FOR A USDA LOAN?

Generally these loans are available to anyone who meets minimum credit guidelines and local area income requirements and is purchasing a home or refinancing their home in an area that is not considered a major metropolitan area by USDA.

Some common misconceptions of USDA Loans:

• They are just for farmers - This just isn't the case. It's not "just for farmers," millions of people already qualify.

• FHA or Conventional Loans are better - In fact, USDA Loans often offer better terms than an FHA or conventional loans.

• They aren't flexible - Actually, they can be used to buy a new home or refinance to a lower rate.

• Only certain people can qualify - Anyone who meets the income and credit guidelines can qualify.

• They are only for rural areas - Actually, they are available in many areas that most people would not consider rural. For example, small communities just outside of metropolitan areas.

• They are harder to get than FHA or Conventional Loans - This just isn't true. In many cases they are actually easier to get because the loans are guaranteed by the government.