Find Out More About USDA Mortgages
When it comes to finding the right mortgage for your upcoming home purchase, there are a myriad of options to explore. One appealing option is a USDA mortgage. These unique loans do not require a down payment and are offered to those with lower credit scores. However, they do have geographical requirements as well as specific income requirements. If you are interested in finding out if a USDA loan is right for your home purchase, please contact our team today. We will be happy to assist you in finding the ideal home mortgage for your needs.
Benefits Of A USDA Loan:
- NO DOWN PAYMENT REQUIRED
- CREDIT SCORES AS LOW AS 640
- GEOGRAPHIC ELIGIBILITY
- REDUCED MORTGAGE INSURANCE (MI)
USDA Loan
How appealing is the idea of building your dream home out on a property with tens or hundreds of acres between you and the nearest neighbor? Some folks may love the amenities of the city, but if the quiet bliss of a more rural area appeals to you, we can help you find a way to make your dreams come to fruition. The USDA mortgage programs offer assistance for those who are looking to buy or build a home in certain rural areas.
USDA mortgage options are broken down into three subsets: guaranteed, direct, and rural repair and rehabilitation loans. They are intended to help those in lower income rural areas afford to buy a home, particularly where income may not have grown as high as housing costs. USDA mortgages often come with low or no down payment requirements. In addition, they have looser restrictions on credit score; generally, you can get approved for a USDA mortgage with a credit score of 640 or above. And, to add to the benefits, many USDA mortgages come with reduced mortgage insurance requirements in comparison to more traditional mortgage options.
Generally, all of the different USDA mortgage types have comparable eligibility requirements. First and foremost is the location of the property you are interested in purchasing. There is not set distance away from city limits; instead, properties must fall within the USDA’s home loan regional “footprint” to qualify. Second, eligibility is based on income — as is the case with many mortgage options. In regard to USDA mortgages, income eligibility is based on the median income in the area. For a guaranteed loan, the income can be up to 115 percent of the median income. For a direct loan, eligibility is generally under 50 percent of the median local income, and can go up to 80 percent, depending on other factors. Rural repair and rehabilitation loans are only intended for those who make 50 percent or less than the median area income.
Whether you’re ready to buy your first home or you’re interested in fixing up an old farmhouse, if that dream home is in a USDA-approved rural area, the USDA mortgage may be your best option for financing. The Patriot Home Mortgage team offers experienced help so we can find the right home loan option for you. Contact our team to learn more about USDA mortgages and other home financing options that may be right for you.
VA Loan
A VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs (VA). Its purpose is to offer long-term financing to eligible American veterans or surviving spouses (provided they do not remarry). This program is to provide home financing to eligible veterans in areas where private financing is not generally available and to help veterans purchase properties with no down payment. Eligible areas are designated by the VA as housing credit shortage areas and are generally rural areas and small cities and towns not near metropolitan or commuting areas of large cities.
A VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs (VA). Its purpose is to offer long-term financing to eligible American veterans or surviving spouses (provided they do not remarry). The VA mortgage program is to provide home financing to eligible veterans in areas where private financing is not generally available and to help veterans purchase properties with no down payment. Eligible areas are designated by the VA as housing credit shortage areas and are generally rural areas and small cities and towns not near metropolitan or commuting areas of large cities.
VA Mortgage Financing Options
The VA loan allows veterans 103.15 percent financing without private mortgage insurance or a 20 percent second mortgage and up to $6,000 for energy-efficient improvements. In a refinance where a new VA mortgage is created, veterans may borrow up to 90% of reasonable value, allowed by state laws. In a refinance where the loan is a VA mortgage refinancing to VA mortgage (IRRRL Refinance), the veteran may borrow up to 100.5% of the total loan amount. The additional .5% is the funding fee for a VA Interest Rate Reduction Refinance.
VA mortgages allow veterans to qualify for loan amounts larger than traditional Fannie Mae or conforming loans. Patriot Home Mortgage can help walk you through this process to gain access to this incredible resource available to American veterans. Contact our team to discuss your VA home loan options.
VA Loan Benefits
We Specialize in VA Loans
Our mortgage company is called Patriot Home Mortgage for a reason — we specialize in helping veterans and their loved ones find the house of their dreams. We know that finding the right home loan can be challenging, but we’re here to help. If you think you may qualify for a VA home loan or would like to better understand your options, contact our mortgage company in St. George, Utah or Mesquite, Nevada to schedule a free consultation.
Government Guarantee
A VA home loan comes with such favorable terms because the federal government backs the loan. That means that the government guarantees that a portion of the home loan will be paid back to the mortgage lender, even if you end up not being able to make the monthly payments. This encourages lenders to offer VA loans to borrowers.
Among the Lowest Rates
A VA loan is one of the lowest-risk home loans available, which means lenders can offer great rates. Most home loan programs require a higher down payment and credit scores than VA loans, which means that if you qualify, you can get very favorable rates.
Easier to Qualify for VA Loan
Like any home loan, you need to provide specific financial documents, like credit history and gross income. However, unlike a conventional loan or another type of home loan, the guidelines for a VA loan are more flexible, meaning that you may be able to qualify with a higher credit score or lower monthly income than you would for a different type of home loan.
Closing Costs May Be Lower
The VA limits the closing costs that lenders can charge for those who receive a VA loan. This makes buying a home more affordable and accessible. If you’d like to learn more about closing costs and how these fees affect the home buying process, contact Patriot Home Mortgage in St. George or Mesquite.
No Mortgage Insurance
Typically, mortgage lenders require you to buy mortgage insurance to protect the lender in case you default on the home loan. Because a VA loan is backed by the government, you most likely will not have to pay mortgage insurance.
VA Mortgage Financing Options
The VA loan allows veterans 103.15 percent financing without private mortgage insurance or a 20 percent second mortgage and up to $6,000 for energy-efficient improvements. In a refinance where a new VA mortgage is created, veterans may borrow up to 90% of reasonable value, allowed by state laws. In a refinance where the loan is a VA mortgage refinancing to VA mortgage (IRRRL Refinance), the veteran may borrow up to 100.5% of the total loan amount. The additional .5% is the funding fee for a VA Interest Rate Reduction Refinance.
VA mortgages allow veterans to qualify for loan amounts larger than traditional Fannie Mae or conforming loans. Patriot Home Mortgage can help walk you through this process to gain access to this incredible resource available to American veterans. Contact our team to discuss your VA home loan options.