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USDA / Rural Development Mortgages
Like many other people, you may already be paying rent and a mortgage payment is not intimidating. However, the idea of coming up with a large down payment is, and it seems like the biggest problem when you dream of purchasing a home. The good news is, there is a solution for you!
Rural Development Mortgages, otherwise known as USDA or RD loans, allow up to 102.75% of the appraised value of the home to be financed. This means that you can finance the amount you agree to pay for the property as well as a portion of your closing costs. Additionally, if the home is in need of any repairs, you would be able to finance those as well, providing that the appraised value is above the sales price.
USDA loans are for properties which are considered rural in nature and for families which are classified as "low to moderate income". However, this does not mean you should automatically think this type mortgage is not right for you. A map is available at the USDA Property Eligibility website. There is also an Income Eligibility website to verify the income limit for your county.
There are many areas which qualify for the USDA loan that are surprising, and over 60% of Alabama's population qualify within the income guidelines.
So if you are thinking of buying a home, but unsure of taking on the burden of providing a large down payment, the USDA loan is a perfect option! Give us a call today to get started or apply online!