Academy Mortgage’s USDA Home Loan Program provides 102% financing (the purchase price and guarantee fee) for low- to moderate-income homebuyers wanting to buy a home in a rural development area. USDA Home Loans are affordable and backed by the federal government. Qualified program participants must purchase a home in an eligible rural area, as defined by the U.S. Department of Agriculture, and have a household income that does not exceed the established limits where the home is located.
USDA Home Loans offer the following features:
Both first-time and experienced homebuyers may take advantage of a USDA Home Loan, provided they meet the following qualifications:
You and/or your family are ready to purchase a home in a rural community. You have researched and decided that a USDA home loan guarantee is perfect for you to help obtain a mortgage. You have contacted a USDA approved lender and successfully applied and are pre-approved for a home loan. Now what do you do?
Before you begin searching for your home, there are a few things you must take into consideration. There are restrictions on where the home is located. The home must be construction standards. And the home must meet the size and cost within your approved mortgage budget.
Finding the perfect home is like finding the proverbial needle in a haystack. Add the qualifications required by your mortgage guarantor, and it makes finding the perfect home even harder. But if you start with the limitations and restrictions in mind, you will have a much easier time locating a home that is suitable and functional for your family's needs.
A home purchased through the USDA home loan guarantee program must be located in a qualified rural area. Qualified rural area is defined as open country places, and homes in cities with populations of 10,000 or less. Under certain conditions, the home may be located in towns and cities of 10,000 to 25,000 in population. If you have questions regarding whether a potential home is in a qualified area speak with a representative from a USDA Rural Development field office.
You can shop for a new home recently constructed, or an already existing home. If you decide upon purchasing a new home built within the last 12 months, you will need the following:
If you decide to look for a home previously built, meaning it was constructed more than 12 month prior, the home must meet the following requirements to qualify for a USDA home loan guarantee:
A previously constructed home must also show documentation and certification of a termite report, as well as a qualified home inspection.
Finding the right home to purchase using the USDA home loan guarantee program can be daunting. But knowing first-hand what you need to look for will help you shorten your shopping time - allowing you to move into a beautiful home soon!
Learn more about USDA Loans:
Contact your Loan Officer today to see if a USDA Home Loan is the right solution for you. We take pride in delivering value and savings to homebuyers in our country’s rural populations. It would be a pleasure to help. Visit the USDA Rural Development website for additional information.