The United States Department of Agriculture is an important national government agency. But this is a real estate blog; isn't it? What could the USDA have to do with real estate? That is a fine question and it has a very encouraging answer.
The USDA is interested in maintaining viable rural and farming communities. They have created a special loan product exclusively designed to help homeowners buy rural properties. This is not just for farmers. Farm communities are composed of the same essentials as an urban community. There are stores, gas stations, post offices, banks and other services that are needed to keep a town sustained.
The USDA loan offers qualified buyers in these rural communities the ability to buy real estate with no money down. This program also has very nominal mortgage insurance that is far less expensive than conventional or FHA products. There are of course some restrictions.
The loan must be on a property in a USDA designated rural place. Here in Clark County there is a large area of USDA qualified properties. In general everything North of 179th Street and NOT in the Battle Ground city limits is fair game. There is a USDA website that offers more detail about designated places and other restrictions, here. The map below shows the boundary area and again, areas inside the incorporated Battle Ground City Limits is out as well.
The USDA also has an income restriction. That figure is based on the local market and is not to exceed 115% of the federally established median for the local area. The current maximum allowed income for a family of four in Clark County is $83,950 gross per year. The USDA has a worksheet to help with eligibility requirements. There are additional benefits for over 62 or disabled persons. Click here for more info.
These loans are are limited to USDA funds that are subject to annual federal budget grants. They are the best no down product other than a VA loan. There are several quality lenders here in Clark County that are familiar with these great loans. In general the interest rates on USDA loans is a little higher than conventional and other government backed loans. The FHA loan however has a much higher mortgage insurance and that makes the USDA a superior product if the buyer meets the requirements. Buyers that are qualified VA are almost always better using their VA benefit. Buyers should speak with their trusted mortgage professional to get all the details of these loan products so as to make the best decisions for them.
This is just another great opportunity for home buyers to take advantage of low interest rates, reasonable housing prices and great loan products. It is a good time to buy real estate.
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