USDA Loan Program

USDA loan program – When people think of the USDA, the first thing that usually comes to mind is agriculture and food, not housing. However, the United States Department of Agriculture (USDA) plays a big role in the housing industry. It promotes the development of rural areas around the nation by providing a guaranteed loan program (USDA mortgage programs) to first time and repeat / move up home buyers who seek to purchase homes in qualifying USDA rural areas. The USDA loan program provides home ownership opportunities to low and moderate income rural Americans through several loan, grant, and loan guarantee programs. USDA also makes funding available to individuals to finance vital improvements necessary to make their homes decent, safe, and sanitary.

You don’t have to go far in and around Charlotte to find eligible USDA areas. Zip code 28214 and 28215 qualify for this program. Many other areas do qualify as shown on the USDA eligible areas map. The USDA loan program is available in Mecklenburg, Union, Gaston, Iredell, Cabarrus and Stanly counties.

100% financing for Charlotte home buyers using USDA loan program

USDA is the only program offering a true  zero money down option to purchase a home. A conventional loan can require up to 20% down, while a FHA loan only requires 3.5% down and USDA…well no money down. Using a USDA guaranteed loan, a home buyer can save thousands of dollars in upfront costs by financing the full purchase price of a home and still get a 30-year fixed rate loan. There is also no PMI (private mortgage insurance), but there is a USDA fee to use the program. For many first time home buyers who are strapped for cash, this program opens the door to home ownership wide open. Not all applicants qualify to this program, but most do.

USDA Homes

Homes that qualify for the USDA loan program are often called USDA properties or USDA homes. Homes that qualify for the USDA program can be existing, new or proposed constructions that are stick built, modular, townhouses, condominiums and manufactured homes (only if new). Existing homes must meet certain certain building code requirements established under HUD. If the selected home is on well water, the water quality must meet local and state code. There is no stated purchase price limit, but how much of a home can be bought with this program depends on the applicant debt to income ratio and how much the lender is willing the lend to the applicant.

USDA program requirements
USDA program eligible areas in and around Charlotte
USDA program income limits
USDA program benefits to home buyers
Frequently asked questions about the USDA program
USDA loan program