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.The USDA Guaranteed Home Loan Program is backed by the USDA – the United States Department of Agriculture. It is a TRUE no money down home loan. Many people who take advantage of this program are able to get into their homes with little to no money out of their pocket. BUT, there are several eligibility requirements that you need to meet in order to take advantage of this home loan program. The first requirement is that you cannot be a current homeowner. If you already own your home but are planning to sell it, then you are still eligible! You just need to have your existing home sold BEFORE we can close the loan for your new home. The next requirement is that your total annual household income cannot exceed the limits set by the USDA. These income limits are based on market area and family size. Another requirement is that you cannot have defaulted on a USDA loan in the past. This means that if you’ve had a past USDA loan that has gone in to foreclosure, you unfortunately aren’t eligible. To take an advantage of this program, the home has to be located in an eligible rural area. But guess what, rural does not necessarily equal country! Homes do not have to be in a country setting. In fact, there are many areas where entire counties and cities qualify for this program. The property has to meet minimum property standards. The home must be in satisfactory condition, and this loan cannot be used to finance any sort of income producing property. That means mini farms, and properties with farm acreage are not eligible.