The Best Home Loan You’ve Never Heard Of — And How You Can Get One
Wrote by Regina England
Does a home loan with no down payment and decent rates sound too good to be true? It isn’t.
No money down, better rates than an FHA loan, and the ability to finance closing costs. It may sound too good to be true, but in fact it’s a U.S. Department of Agriculture guaranteed rural development loan, and now is your best chance to get one.
What Makes USDA Loans Special?
Ag Department-backed financing is so attractive because it requires no money down but still has rates competitive with other government mortgage products. FHA loans, the most common type of government loan, require a 3.5% down payment at minimum, and saddle low-credit buyers with costly mortgage insurance premiums. USDA mortgages only require a small annual fee and an upfront premium of 1.00% of the loan amount. However, that premium can be rolled into the mortgage, giving buyers the option of getting financed with a 0% down payment.
What’s The Catch?
The catch is the Department of Agriculture limits who can get one of these loans. If you make more than 115% of your area’s median income or already have “adequate housing,” you’re not eligible for USDA financing. You’re also required to purchase housing that is “modest in size, design, and cost” and meets various building codes.
Then there’s the matter of credit. Technically, the USDA doesn’t have a strict credit minimum, but most lenders are reluctant to sign off on anyone with a score south of 620. You can read the details of buyer and property requirements on the USDA’s website. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?NavKey=home@1
Most important, you must live in a specific area defined by the USDA as rural. The department provides a map showing which regions are eligible here. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?NavKey=home@1
ALL of Western North Carolina IS ELIGIBLE.
Why Is Now The Best Time To Get One?
Interest rates remain low, Macon County NC is an eligible area and there are many homes on the market right now. Why rent when you can own?
How Do I Get One?
Homestar Financial is a direct lender of USDA loans. They have been the #1 lender of USDA loans in GA for the past 5 years and looking forward to becoming the #1 lender in NC. Homestar has 3 offices in Western NC and we are looking to grow even more. We are currently licensed in 15 states.
Office locations are:
Franklin, NC located at 21 Iotla Street, Franklin, NC 28734. Call them to get qualified at 828-524-5144 or email them at firstname.lastname@example.org. You can also apply on-line at www.homestarfc.com/reginaengland
Sylva, NC located at 454 East Main Street Suite 1, Sylva, NC 28779. Call them to get qualified at 828-743-0075 or email them at email@example.com. You can also apply on-line at www.homestarfc.com/joepearson
Murphy, NC located at 297 Peachtree St, Murphy, NC 28906. Call them to get qualified at 828-837-2587 or email them at firstname.lastname@example.org. You can also apply on-line at www.homestarfc.com/lurreepavis
NMLS #97496 Branch NMLS #1227171 NC #L-143327 Georgia Residential Mortgage Licensee #24885