USDA loan program helps home buyers in the Charlotte region

The USDA loan program offers many benefits for home buyers in the Charlotte region. Whereas conventional loans required as much as 20% down and credit scores in the 700s, the USDA loan program is truly a breath of fresh air with generous income limits, 30-year fixed rates, flexible credit guidelines and most importantly, 100% loan to value financing. The most desirable benefits for this program include:

• No down payment required to purchase a home. The full appraised value of a qualifying home can be financed for 100% loan to value
• 30 year fixed competitive interest rate
• Closing costs can be financed into the loan if the market value of the home (appraised value) is sufficient. This is a great benefit that has helped home buyers purchase homes with no upfront costs (i.e., down payment and closing costs).
• Expanded ratios of 29/41% that allow the borrower to qualify for “more home”
• No mortgage insurance so monthly mortgage payments are lower than if a conventional or FHA loan is used
• No cash contribution is required from borrower so there is an opportunity to purchase an eligible home with no out-of-pocket expenses
• “Gift” money for closing costs is allowed
• Seller concessions are allowed, i.e., seller paying the buyer’s closing costs
• No loan amount restriction.  The loan amount is based on the borrower repayment ability
• No reserve required. Reserves are liquid funds that lenders sometimes require the borrower to have to cover mortgage payments for 60 days or more
• The guarantee fee for the program is rolled into the loan
• Borrowers with non-traditional credit histories may be eligible

USDA program requirements
USDA program eligible areas in and around Charlotte
USDA program income limits
Frequently asked questions about the USDA program
USDA loan program
Apply for the USDA program