Many Americans think a USDA loan is only for farmers, but lately, more and more people are taking advantage of getting a mortgage insured by the HUD under the USDA to live their dream lives in the country and get away from all the hustle and bustle of urban life.
Why a USDA loan?
Simple. You don’t need a down payment, have very small initial acquisition fees and closing costs, and has one of the lowest interest rate offers among the available federal loan programs today.
Yet, to be able to get a USDA mortgage, you need to find a property that is within areas that lenders consider as “rural.” How does the USDA define the term? What areas are eligible for a USDA mortgage?
A common misconception
You may think of a USDA mortgage eligible house to be in a meadow far off the highway, hundreds of miles from the city, but you’ll be surprised that a lot of properties within the metros are actually USDA-designated.
Make use of the USDA’s handy online portal to check your area of interest’s eligibility by clicking here.
The USDA rules eligible areas that are not part or associated with an urban area. It can be a town, village, or a densely populated location with a population of 10,000 or less. If an area lies within a Metropolitan Statistical Area (MSA) with low mortgage credit, it needs to have a resident count of about 25,000 to qualify.
This clears the misconceptions and could easily include many towns and subrubs that you may have previously thought to be ineligible.
If you are planning to explore the option, talk to one of our professionals today and get started with the process of your loan acquisition.