Looking to afford a rural home? Try a USDA Loan
This entry was posted on Mar 30th 2017
Affordable Rural Homes in Gainesville, FL
If you like country living, there is a loan designed just for you. USDA loans help buyers purchase a rural home with no money down. That’s right, we said banks will provide 100% financing. All the buyers, you, have to pay are their closing costs. This is one of the best loans available because the rates are generally fair and there is no Property Mortgage Insurance (PMI) on USDA, although there is a very low guarantee fee that never falls off.
In order to qualify, borrower must meet a couple requirements and it can depend on family size:
- home needs to be in a rural residential area approved by USDA, such as Archer, Newberry, Alachua, High Springs, Micanopy, and more.
- $75,650 for family up to 4 people, $99850 family 5 or more
- a clear Wood Destroying Organism (WDO) report; this means finding a house with minimal wood rot and no termites is best
Besides requiring a WDO report, this process is typically similar to getting conventional loans. If not, the seller will need to make proper repairs and treatments for a re-inspection by a proper inspector in order to obtain a clear WDO.
The only other difference in the loan process is that the lender will need to turn in the request to USDA before closing. Depending on government back ups, it is better to have everything turned in early enough for acceptance in time for closing.
Because of that time constraint, we suggest using experienced USDA lenders who will save you time and money:
FBT Mortgage, LLC
NMLS # 1339512
Landmark Mortgage Planners
Mortgage Loan Originator
NMLS # 463503
Phone: (352) 505-1981
Robert N. Fillyaw
FBT Mortgage, LLC
Sr. Mortgage Banker
NMLS # 573494
Here are some local insurance companies we suggest, as well: