If you are one of the many Americans who believe that they do not have the cash on hand to buy a new home at this time in your life, you’re neither alone nor without options. One way that you may be able to get approved for a loan to buy the home of your dreams, without significant cash reserves, is through the USDA Home Loan Program!
The USDA Home Loan Program – What’s That?
A USDA (United States Department of Agriculture) home loan is one of the best, and one of the best-kept secrets, home loan programs in the nation today. To be sure, these loans offer 100 percent financing (which means zero down payment!), affordable payment options, and low interest rates.
Sound Too Good to Be True? Here’s What You Need to Know
If a USDA home loan sounds too good to be true, don’t worry – it’s definitely a real thing, and one that you may very well qualify for depending upon whether or not you meet certain criteria (see below). In addition to these items, it’s important to note that a USDA home loan can only be used to purchase a home that meets rural development criteria, which means that you will not be able to use a USDA loan to purchase a home in the middle of the city. Additionally, you must:
- Not already own property that is livable near to the location you want to buy;
- You must only make 115 percent or less than the median income in the area you live;
- You cannot purchase a home that will cost more than 29 percent of your pre-tax income in mortgage payments, principal payments, taxes, insurance, and homeowners’ association payments;
- You must be a U.S. citizen;
- You must not be able to pursue a traditional loan because you do not have 20 percent down – if you have 20 percent, you are not eligible for a USDA home loan;
- You need to be employed, and will typically need to provide at least two years’ worth of dependable employment history records.
Making Sure the Property You Want to Buy Is Eligible, Too
As mentioned above, the property that you want to buy must also meet USDA standards for rural development, as well as other standards, in order for you to be eligible for the loan. This means that the property you want to buy must:
- Be located in a rural area as defined by the USDA – in many cases, “rural” means a population of 20,000 people or less;
- Be safe for living based on the appraisal and inspection reports;
- Be livable – you must use the loan to buy a house, condominium, or townhouse, not a farm or land; and
- Be intended for use as your primary residence. Those buying investment properties or second homes do not qualify.
Don’t Let a Down Payment Discourage You from Seeing Our New Homes Today
At Hayden Homes, we have many new homes across Oregon, Washington and Idaho that are eligible for USDA home loans. Keep in mind that just because a home falls in a “rural area” does not mean that it’s in the middle of nowhere or that there’s nothing to do. Some of our rural communities are in up-and-coming areas that are in huge demand. Contact us today to see our homes and have any of your questions regarding financing answered by one of our knowledgeable team members.
Checkout the Hayden Homes new home communities that are eligible for USDA loans:
- Roselands – Star, Idaho
- Voyage Crossing – Caldwell, Idaho
- Obsidian Trails – Redmond, Oregon
- Summit Crest – Redmond, Oregon
- Village at Cold Springs – Sisters, Oregon
- Whispering Hills – Pullman, Washington
- Corbin Crossing – Rathdrum, Idaho
- Tullamore – Post Falls, Idaho
- Harvest Bluff – Cheney, Washington
- Crossroads – Moses Lake, Washington
*The list of communities may change at any time, please see an Onsite Agent for full details.