If you are looking for an opportunity to lower your down payment while purchasing a home in the Shoals, you should look into the USDA rural housing loan program. USDA mortgages are insured by the US Department of Agriculture. With a USDA loan, you can purchase a Tri-Cities home in an eligible area with zero down and other exciting benefits.
1. Many beautiful properties throughout the area qualify.
The USDA has a specific definition of “rural” locations. So long as the population of the area does not exceed 35,000, you may be able to purchase a home there using a USDA rural mortgage.
You may already be aware that the Shoals is not the most densely populated region. As such, opportunities to purchase homes and in around the Tri-Cities area using USDA loans are ample.
2. Many homebuyers in the area should qualify as well.
The USDA mortgage program is income-based but sets the bracket pretty high. The threshold for qualifying is based on the area’s median income. If you do not earn more than 115% of that amount, you should fit within the income eligibility guidelines.
According to the U.S. Census, for the period spanning 2012 through 2016, the median household income for Florence was $55,322, while for Muscle Shoals, it was $52,132. That should give you some idea as to whether you are likely to qualify or not.
3. You may be able to buy a home with zero down.
Like the VA mortgage program, the USDA loan program allows homebuyers to move into new homes without a down payment. This is excellent news for first-time homebuyers and others who may not have a lot of liquidity in their budgets.
4. Your credit score doesn’t need to be perfect.
While there is an income cap for the USDA mortgage program, the eligibility requirements for credit scores are relaxed. This helps even more people to qualify for USDA loans in the Tri-Cities region.
5. To help keep costs affordable, mortgage insurance can be discounted.
You are required to pay for mortgage insurance when you take out a USDA loan. This insurance is discounted to be affordable, however, so even if you do not have a lot of room in your budget, you should be able to manage payments.
6. Closing costs and interest rates are affordable.
Because USDA mortgages are targeted at a capped income bracket, they are tailored to be affordable in other respects as well. Mortgage companies can provide lower rates and closing costs because USDA mortgages have government backing.
Move Affordably into a Rural Home in the Shoals with a USDA Mortgage Now
Our mortgage experts would love to have a chance to help you apply for a USDA loan. To schedule your consultation and begin the process today, please call (256) 690-5132.