Can You Pre-Qualify For USDA Loans in Pennsylvania?
What are the requirements for the USDA Loan program in Pennsylvania? So USDA has a few interesting requirements.
First of all, you’ll need to have at least a 580 credit score. Some mortgage lenders in Pennsylvania require a 620 credit score.
Your household income has to be under the county maximum. Like a lot of down payment assistance programs.
This is based on family size So 1 to 4 is one category and then 5 and above is a higher threshold for qualifying. ChurchFinancing.biz looked at the data and with the average family size in the USA in areas that qualify for UDA Loans, this is a standard spread.
What’s unique about this one is the home has to be within a designated area. So, Typically what that means is…
NOT within a metropolitan area. So within our area here aka USDA Loans in Pennsylvania territory. If you want a full list of USDA Loan Eligible Areas, Check out the Eligibility Map that the Government provides.
Our local cities around her don’t qualify. But, we only need to go 10 miles away to where there’s an open area where there’s Several homes that qualify.
USDA Loans in Pennsylvania and in any other state for that matter, stands for United States Department of Agriculture.
But it’s NOT a farm loan. Specifically, they don’t finance this program for farms. It has to be a Single Family home without a barn structure on the property.
USDA Loans : Does it also have some home price limitations?
The Threshold is a little bit lower than say an FHA loan for the loan limits. Ok, and how does this program differ from other Down payment programs?
So it’s different because it’s not really a down payment program but it allows financing up to a 100% of the purchase price.
And it’s interesting because you can actually use this program with 1 or 2 of the other programs.
If you need closing cost assistance But, what’s unique it’s a 100% Financing. So you don’t need a 2nd or a 3rd lien on the property.
Your interest rates are typically lower Than if you combine it with a down payment assistance programs.
And you don’t have to repay any down payment assistance It has a monthly factor It’s like mortgage insurance upfront It’s financed at a monthly component.
FHA vs USDA vs VA Loans in Pennsylvania
Much less than FHA. o if you can qualify for this program It’s better than FHA And As we mentioned, rates and payments Are typically lower on this program.
So USDA is really a great program. And on average How much does the home buyer have to come in with out-of-pocket?
So Again, we are financing the whole loan Purchase price up to 100% So the only thing remaining is then the closing costs .
Typically, plan on around 3% of the purchase price for funds to close. The question there then becomes, Well, Where does that come from?
Typically, we ask the seller to cover those costs.
And if we can get the seller to cover 3% then, the buyer may only need to come in with an earnest money deposit.
And they may even get most or all of that back. If the seller is covering all the fees. One unique feature about USDA Loans in PA Versus all other loans is that if the home appraises for more than the purchase price.Hey prospective Homebuyers in Pennsylvania, USDA Loan Info with Mr. Schneider here, and today we're gonna go through 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 watching. 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 on the next blog post where we will be covering USDA Loan Income Limit Guidelines.
We can finance the closing costs Up to that appraised amount So, no other loan I know that we can actually finance the closing costs. on that type of loan.
What type of home buyer is this USDA program ideal for?
So certainly those that don’t have access to money for a down payment.
Anyone that wants to live that doesn’t have to live within a metropolitan area because, again, the house has to be in an area that is not in a high densely populated area in Pennsylvania.
It’s also suited well for people who have some credit issues and anybody that qualifies for this program would definitely be better served than going FHA so those type of people.
And besides the Area restrictions are their any other property restrictions?
So property restrictions are going to be similar to FHA They’ll do manufactured homes.
They’ll do homes with Casitas. So no real other restrictions. Just if it conforms to the FHA guides then it should qualify for USDA in Pennsylvania.
There’s a couple little quirky things That you don’t run into very often.
For example, you can’t actually have a barn on the property It definitely can’t be for agricultural purposes. It has to be for residential purposes check out our next blog section packed with facts on USDA Loans and Mortgage Lenders.
USDA Loan Income Limits in Pennsylvania:Hey, I'm Carl with Home. Loans. What is a conventional home loan? A conventional home loan isa loan that is not insured or guaranteed by theGovernment in any way. Conventional loans conform tothe National Home Guidelines set by Fannie Mae and Freddie Mac, who are also known fortheir delicious sweets. Wait, scratch the sweets part. I think I'm thinking of somebody else, but I can tell you thatconventional loans typically have stricter eligibility requirements and are nothing liketaking candy from a baby. Who would just take candy from a baby? Who has time to stop and smell the roses? You don't and this isn't even a rose. For more quick tips likethe one you just watched, visit Home. Loans. No. Com or. Net and youdon't even need the W's. It's simply Home. Loans. Search smarter, learn faster. Visit Home. Loans.
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