When shopping for a home in North Carolina, you may be considering a property in a rural location. If so, did you know you may be able to purchase it with zero down? A USDA mortgage makes it possible.
What is a USDA Loan?
A USDA home loan is a mortgage the US Department of Agriculture guarantees. Similar to FHA and VA loans, USDA loans feature easy credit qualifications and affordable rates. They differ in being income-based.
You can use a USDA mortgage to purchase a home in an area designated as “rural” by the USDA.
Benefits of Raleigh USDA Loans
- You do not need perfect credit to buy a home in a rural area using a USDA mortgage.
- You can purchase a home with 100% financing.
- Being able to buy a home with no down payment may mean being able to achieve your goal of owning a home sooner than you could otherwise.
- USDA mortgages do not have a single set loan limit. Your individual qualifications determine how much you can borrow.
- There is a USDA loan guarantee fee. But it is less expensive than FHA mortgage insurance premiums (MIP).
Who Qualifies for a USDA Loan?
You need to meet these basic criteria to buy a home using a USDA mortgage:
- You must purchase a home in a rural zone.
- You must not earn more than 115% of the median household income for your area.
The USDA has a broad definition for what constitutes a rural area. That includes some locations that you might not think are “rural” on your own.
Apply for a USDA Mortgage Now
To find out if you can buy a rural home with zero down, please give the Martini Mortgage Group a call at (919) 238-4934 to schedule your consultation. We are based in Raleigh and help rural homebuyers throughout North Carolina as well as the states of Florida, South Carolina, Georgia, Illinois, Tennessee and Virginia.