USDA Rural Housing Loans: A Shoals Opportunity Not To Be MissedThose who are looking for a chance to purchase affordable housing in a beautiful part of the south will find that the Shoals have it all. Lovely weather, a rich history, and rock-bottom prices make for an amazing opportunity all around.

But could you be missing an opportunity when you apply for a home loan in the Quad-Cities? If you are overlooking USDA rural housing loans, it is quite likely that the answer is “yes.”

While conventional loans, jumbo loans, and FHA and VA loans may be right for many homebuyers throughout the Shoals, quite a few will be best served with a USDA rural loan.

Because the rural loan program is not as well-known as the VA and FHA programs, we want to take a few minutes to better acquaint you with this excellent loan product.

What Are USDA Rural Housing Loans?

These are government-backed loans which are insured by the US Department of Agriculture. In this way, they are similar to FHA loans (insured by the Federal Housing Administration) and VA loans (insured by the Department of Veterans Affairs).

With the USDA backing your loan, your risk profile as a borrower decreases. That means you can enjoy some fantastic benefits (see below).

USDA Loan Benefits in the Shoals

With a USDA rural loan in the Quad-Cities area, you can look forward to:

  • No down payment.
  • Competitive fixed interest rates.
  • Low-cost mortgage insurance.
  • Easy credit qualification.
  • Reasonable closing costs.

USDA home loans can be used for home purchase or construction, refinancing, and more.

Not everyone qualifies for a USDA rural loan; it depends in large part on your income. So long as your income does not exceed 115% of the median in your area, you should be eligible.

For reference, the US Census lists the median household income as of 2012-2016 for Muscle Shoals to be $52,132. Meanwhile, for Florence, it is $55,322.

Remember, the number needs to be adjusted for your family size. Also keep in mind that the median income in other parts of the Shoals may be slightly higher or lower.

Are the Shoals a “Rural” Area?

The USDA defines qualifying areas for this type of loan as, “Rural areas with populations of up to 35,000.”

Considering that many parts of the Shoals have populations far below 35,000, there are quite a few areas in and around the Shoals which may be considered “rural” by these standards, even though you may not think of them as being “traditionally” rural.

USDA Loans Are Flexible

A lot of people are surprised by just how versatile USDA loans are. Here are a few more advantages of USDA loans in Florence and the Shoals:

  • Repeat home buyer? No problem. A lot of folks assume that this is a loan only first-timers can qualify for, but that is not the case at all.
  • You can use a USDA loan for a modular house. This is a great way to save even more on a new home.
  • If you are eligible for a grant through a local program, that doesn’t disqualify you from the USDA rural loan. You should be able to use both together.

Need Help Figuring Out If You Are Eligible for a USDA Housing Loan? Call Us Today

Here at Prime Mortgage Lending, Inc., we specialize in affordable housing loans through government-backed programs like that offered by the USDA. We are experts in the complexities of loan qualification, and can help you figure out whether your income falls within the qualifying bracket, and whether the house you want to purchase is in a “rural” area.

Ready to move into your dream home for less? Call us now at (256) 690-5132, and we will set up your consultation. We look forward to helping you apply for a USDA rural housing loan in the Shoals!