USDA Loan Option

USDA Loans

The inability to qualify for a conventional mortgage product doesn't mean you can't make your dream of owning a home come true. Federally backed programs such as USDA loans can provide many buyers a practical and affordable alternative. Johns Creek Mortgage, LLC is your best resource for USDA loans that can provide a pathway to homeownership for low-to-moderate-income buyers in rural and suburban areas. Our professional loan consultants will provide excellent service throughout the process.

The USDA Home Loan Requirements Include:

  • Location: The property must be located in an eligible rural area as determined by the Rural Development Program. The definition of "rural" is not overly restrictive, and suburban properties in areas with a population of 20,000 or less may also be eligible.
  • Income: Applicants must meet income eligibility requirements per the applicable program. These guidelines vary depending on state and region, although the buyer's income generally cannot exceed the area's median income by more than 15%.
  • Closing cost assistance threshold: The seller may pay the borrower's costs at up to 6% of the sales price.
  • Owner-occupied single-family properties only: The home must be the buyer's primary residence. Duplexes, vacation homes and properties purchased for investment purposes are not eligible.
  • Affordability: Borrowers must be able to afford housing payments, including monthly debts. In general, borrowers should have a debt-to-income ratio no higher than 41%, although those with solid credit scores and stable employment histories may receive more leniency.
  • Credit requirements: Borrowers must have an acceptable credit history. Most investors require a minimum FICO score of 640 for a USDA loan.

What Are the Benefits of USDA Loans?

USDA loans offer many advantages for prospective borrowers:

  • Zero down payment: 100% financing is the most attractive USDA loan feature for many homebuyers. Unlike FHA programs that require a minimum down payment of 3.5% of the home's purchase price, it's possible to get into a home with no money down.
  • Low rates: USDA mortgage rates are typically below-market in most areas, which can reduce monthly payments and long-term interest costs.
  • No pre-payment penalties: Homeowners won't incur fees when paying the loan off early or refinancing or selling.
  • Lower closing costs: Buyers can negotiate with the seller to pay some or all the closing costs (up to the maximum limit) or roll them into the loan.
  • Affordable PMI: Although borrowers making a down payment of less than 20% of the purchase price must carry private mortgage insurance, the rates are the lowest of any loan program.
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Important Notice:

Interest Rates and Maximum Loan-to-Value may be based on Credit Score, Property Type, Occupancy, Purpose, Investor, Insurer, Loan to Value and other factors. Additional investor, insurer and Johns Creek Mortgage, LLC's criteria/conditions apply to all products. Information provided is for illustrative general use only and does not contain all qualification and automated underwriting approval requirements. Johns Creek Mortgage, LLC reserves the right to change this information at any time. Meeting any of the criteria does not constitute a commitment to lend.

Need more information? Call us at 678-632-0080 to speak with one of our experts.

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