Majestic Lakes is USDA Loan Eligible

Guest Blog: Contributed by Missy Palitzsch, Flat Branch Home Loans

If you feel at home in a town surrounded by pastures, or ever asked yourself: “I’d love a zero-down option for properties in eligible areas,” here’s a home buying solution we have in-house and it's available to eligible buyers at Majestic Lakes by Houston Homes, LLC in Moscow Mills, Missouri.

Designed to promote homeownership, the USDA program allows buyers to purchase or refinance a home without a down payment while obtaining an interest rate lower than other loans.

What Is It?

USDA-backed mortgages serve these borrowers to promote rural and suburban living. The primary advantage is that the borrower doesn’t pay a monthly mortgage insurance, making the monthly payments more affordable.

What Makes It So Great?

Don’t underestimate the power of the USDA:

• There's no down payment, but if you put little or no money down, you will have to pay both an annual (0.35% of the total loan amount) and monthly service fee (1/12th of the annual fee).
• They have low-interest and mortgage insurance rates. With subsidies, interest rates can be as low as 1%.
• It's not limited to first-time home buyers: unlike other loan programs, daycare expenses and other allowable expenses may be deducted from your annual income to help keep you under the limit.

But Do I Qualify? 

It might seem pretty niche, but there’s more coverage than you think:

• Income: each county has a specific income limit for USDA eligibility. Based on this USDA map of requirements, many low- to moderate-income families and individuals can qualify.
• Credit score: a FICO credit score of 600 or greater meets the minimum requirement. Those without a credit score can qualify for “non-traditional” credit references, such as rental and utility history payments. For bankruptcies or foreclosures, take about three years to build yourself up for USDA eligibility.
• Property: so “rural” can seem very, very vague. Basically, the term means not:
•      within a city, town or incorporated area that has a population of greater than 20,000 residents.
•      an urbanized area contiguous and adjacent to a city or town that has a population of greater than 50,000 residents.

Even if you think you’re not qualified for a USDA loan, contact your local FBHL Loan Officer (who are USDA-approved) to find out for sure.