Do You Pre-Qualify for USDA Loans in Pennsylvania?
Welcome to a discussion on USDA Loans Pennsylvania brought to you by churchfinancing.biz! As you are probably aware, right now you’re considered almost Pre-Qualified Candidates!
On our page here and we’re going to provide you with everything you need to know about USDA loans in Pennsylvania.
So USDA loans are a government program meant to promote homeownership in rural areas. Typically the costs are significantly lower.
You get into home ownership with USDA Loans.
Zero percent down, mortgage insurance is significantly less than your FHA loans and your interest rates too are typically lower than your traditional mortgage rates.
They’re available from any mortgage lender. So you don’t have to go through a special entity or even the government to get approved. There are USDA income limits on this type of loan.
So you need to make sure you qualify because they are meant for the medium earners. And the loans are geographically based.
Finding USDA Eligible Areas in PA
So the home that you’re purchasing must be in an eligible area but most suburban areas are.
And if you’re a home buyer, if you’re thinking about buying a home I encourage you to check this one out first before you jump right into conventional because you may be surprised.
For more on this topic, for more about USDA loans click the link here: USDA Loans.
So you’re a prospective Homebuyers in Pennsylvania? Well, USDA Loan Info in conjunction with churchfinancing.biz brought in one of our Qualified USDA Loan Agents.
Now, what are the pros and cons of a USDA loan?
Pro number one is that there is an option for no down payments.
Con number one is that there’s some geographical restrictions.
Because this program is meant to support purchasing a home in rural areas, there are geographical restrictions that could cause quite a long commute if you are working in the city.
Pro number two, there’s some flexible credit guidelines. There’s the 640 minimum, and if you do have a few dings, you’re probably gonna still be okay.
Con number two is that there’s some income limits.
You do have to meet income limits that are based off of the median income in the area you’re living in.
Pro number three is that the interest rates are typically lower than your standard conventional loan.
Con number three is that you can’t get out of the mortgage insurance. While it is a little bit lower with the USDA loan, it’s still gonna add to your overall costs.
Thanks so much for reading our USDA Loan Pro’s and Con’s information packet. For more on USDA loans, for the pros and cons, check out our blog at churchfinanzing.biz.
Thanks so much for reading, we’ll see you in our blog posts section where we will be covering USDA Loan Income Limit Guidelines.
Pennsylvania Areas that Qualify for a USDA Loan
You just may be surprised at how many Pennsylvania areas qualify for a USDA Home Loan. Designed to stimulate growth in small or rural communities, areas that are eligible for a USDA Loan include:
Communities located outside of city limits
Communities with less than 20,000 people
Never assume that your area does not qualify for a USDA Loan. The experts here at churchfinancing.biz are here to help, fill out the Pre-Qualification Application, or call one of our certified USDA loan agents at (888) 464-8732.Hi this is Scott Hastings with Mortgages byScott, powered by On Q Financial. You might wonder why I'm standing in the middleof a field and that's a good question. The reason is I'm talking about USDA loanstoday. Although this looks like a very rural areaI'm only really about a mile and a half from downtown Davidson. A lot of people wouldn't think that Davidsonwould have any areas that are USDA eligible but there really are. A lot of people give me a all looking fora loan where they don't have to put any money down and there's no mortgage insurance, andthat is a USDA loan. USDA loans are great, the only thing is thatthey are not eligible for all borrowers because of income requirements or caps on householdincome, and they are not available on all properties. The income requirement is going to be basedon the number of people that live in the house, not just the number of people on the loan. Most loans are going to go by who is on theloan, so in this case if you have 3 people who live in the house, but only 1 person isgoing to be on the mortgage, the income is only going to be considered, as far as qualifyingfor the loan itself, by the person who's on the loan. But USDA is going to count the number of peoplewho live in the household. So if a husband and wife both work, but onlythe husband is on the loan, and if their income together is less than the maximum householdincome limit for that USDA area then they are good to go. But if together their income exceeds the maximumincome limit for that area then unfortunately they wouldn't qualify. Also not every home is going to be eligiblefor a USDA loan. And there's not really a map where you canjust look at it and say "Oh that whole area is USDA eligible". You have to go to the USDA website and youcan put in the address of the property and it will tell you whether it's a USDA eligibleproperty. You can also go in there and type in the amountof monthly income the borrower has and see if that household income exceeds the maximumincome requirement. There are some tips and tricks on gettingqualified for a USDA loan where you might not think that you would normally be eligible. One is a mortgage credit certificate and certainthings like that so if you have any questions at all about a USDA loan please give me acall.