{"id":6383,"date":"2017-06-29T06:07:22","date_gmt":"2017-06-29T10:07:22","guid":{"rendered":"http:\/\/teammovemortgage.com\/?p=6383"},"modified":"2020-07-13T22:29:01","modified_gmt":"2020-07-13T22:29:01","slug":"usda-eligibility","status":"publish","type":"post","link":"https:\/\/teammovemortgage.com\/blog\/usda-eligibility\/","title":{"rendered":"USDA Eligibility Revisions Made for Home and Property Requirements"},"content":{"rendered":"

So many prospective buyers look for a way to purchase a home<\/a> with little to no money down.\u00a0 Well, USDA Rural Development<\/a> Guaranteed loans offer 100% financing qualifying buyers.\u00a0 But in addition to buyers qualifying, the property must qualify as well.\u00a0 Although USDA is extremely beneficial for buyers and sellers, USDA eligibility is a little different from other loans.\u00a0 USDA Rural Development made recent revisions to the guidelines for minimum property requirements.\u00a0 So let’s explain these recent changes.<\/p>\n

First of all, why consider a USDA home loan?\u00a0 Actually it is the best, little known mortgage available and it isn’t just for first time buyers<\/a>!\u00a0 One of the biggest roadblocks to homeownership is the down payment.\u00a0 Actually a recent article by Apartment Therapy “Forget Avocado Toast: Here’s How Long It Takes Millennials to Save for a Down Payment<\/a>” explains how it can take 5, 10, or more years to save up for a down payment in many markets!\u00a0\u00a0But USDA does not require a down payment.\u00a0 Therefore, why wait when a purchase could be possible right now?<\/p>\n

In addition, USDA\u00a0even allows for the seller to pay up to 6% of the purchase price in closing costs for the buyer.\u00a0 This feature could make a home<\/a> purchase truly a no money out of pocket transaction!\u00a0 Furthermore, an affordable monthly payment is key to most buyers.\u00a0 Well, USDA not only has a 30 year fixed rate but it also has a very low financed funding fee and monthly mortgage insurance.\u00a0 When Rural Development lowered the funding fee and annual fee (type of mortgage insurance included in the payment), it made USDA\u00a0an even bigger benefit to buyers.<\/p>\n

USDA Funding Fee & Annual Fee Decreases Means Low Payments<\/a><\/h2>\n

As mentioned, besides borrower qualifications USDA eligibility requires properties to be in an eligible area.\u00a0Then, there are other type of property requirements which have gone through recent changes.<\/p>\n

Search for USDA Eligible Properties Here<\/a><\/h2>\n

Now let’s talk about the technical details of these changes.\u00a0 Our experienced USDA loan officers are familiar with these guidelines, so feel free to ask questions.<\/p>\n

USDA Eligibility Revisions to Handbook 3555<\/h2>\n

USDA’s guidelines for guaranteed loans are in the USDA Handbook 3555<\/a>.\u00a0 Just like all mortgage loan types, rules change over time.\u00a0 Although, recently many lending agencies have\u00a0loosened more rules rather\u00a0than gotten more strict.\u00a0 The recent\u00a0USDA property eligibility changes involve…<\/p>\n