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USDA mortgage program is helping first time home buyers in Ohio who never thought they could do anything but rent due to their low income and absolutely no savings. But, any first-time or repeat buyer looking for homes outside of major cities should check their eligibility for the program. Officially known as the Section 502 Single Family Housing Guaranteed Loan Program, the USDA loan is a $0 down mortgage option available to rural and suburban homebuyers in the United States. USDA loans are issued by qualified lenders and guaranteed by the U.S.
Most lenders that offer USDA Guaranteed Mortgage Program have a minimum loan amount of $50,000. Since the USDA Mortgage Program is so focused on income and property requirements at a county level, we have organized this website with an individual page for each county. Check your county under the Eligible Counties tab to show your local income requirements and area requirements for each county in Ohio. The other major metro areas of Ohio such as Columbus, Cincinnati, and Toledo still have some eligible areas within their counties. Most counties in Ohio are either entirely eligible or just have small pockets of ineligibility around the largest town or city.
Advantages of USDA Loans
You can only buy one unit of the multi-unit property, or a single family residence . There are no exact loan limits for USDA loans, as there are for other loan types such as FHA and conforming . The amount that you personally can borrow will be determined mostly based upon your debt-to-income ratio.
The purpose of a USDA loan is to provide low-to-moderate income households with the opportunity to own a home in eligible rural areas. This guarantee allows for benefits, such as zero down payment, low rates and lenient credit requirements. Once you have a USDA loan from the original purchase of your home, you may be able to streamline refinance on future loans.
Get a Free Mortgage Consultation
If you’re interested in a USDA direct mortgage or home improvement loan or grant, contact your state’s USDA office. Talk to a mortgage expert and learn about all government programs in Ohio. Borrowers are required to repay all or a portion of the payment subsidy received over the life of the loan when the title to the property transfers or the borrower is no longer living in the dwelling. Ohio has 88 Counties and 86 of these counties are either fully eligible or partially eligible for the USDA Mortgage Rural Development Program.
Apart from home buyers eligibility, the property should also be in a location eligible for USDA loan. Metropolitan areas are excluded from eligible areas, nearby areas may qualify for the USDA program. If you are willing to go for USDA mortgage make sure to check the USDA eligibility of the property.
Can the USDA Mortgage Program be used to purchase an Investment Property?
For example, many small communities just outside of metropolitan areas qualify as rural areas according to the US Department of Agriculture. FHA or Conventional Loans are better - USDA Loans often offer better terms than an FHA or conventional loans. They are usually easier to get because the Government insures the loan so that there is much less risk to the lender. You can refinance your home up to 100% of the value of your home. The best way to get started is by doing a home search from the list of properties and identify those that are in an eligible zone, these come with a special tag "In USDA Approved Zone".
No, the program is only for the purchase of a primary residence. The USDA has you attest at closing that you plan on occupying the home as your primary residence for at least a year. You can eventually buy another primary residence down the road and keep your USDA home as an investment property. The new home purchase would need to be with a non-USDA program, since the USDA does not allow you to have two USDA mortgages at the same time. Most USDA approvals requires a 640 credit score, however an exception can be made for scores down to 620.
Benefits of USDA Loans
Once this form is completed you will have the option to start your USDA mortgage application. Jon walked me thru a difficult refi of 2 properties simultaneously. My situation was a little bit complicated based on a few moving parts, however, the process went very smooth and all my options were clearly explained as we went along. You will soon be enjoying the peace of mind knowing that you're on the path to homeownership.
No confidential information is collected as part of this form. Yes, but only if the current mortgage on the house is also a USDA mortgage. Visit the Ohio USDA Mortgage Property Guidelines section to see if the home you wish to purchase meets the requirements. The USDA Guaranteed Mortgage Program in Ohio enables home buyers to purchase a home with No Down Payment required. Smart Mortgage Centers holds the highest 5 star ratings with Google, Yelp, Bing and Facebook. A+ Accredited with Better Business Bureau we supply our clients with one on one customer service from start to finish.
While it may be possible to obtain a USDA home loan with a lower credit score, it is widely accepted that a homebuyer with a 640 or higher score is more likely to qualify. No monthly mortgage insurance required on Ohio USDA loans, monthly payments on this program are often lower than other Government backed loan options. USDA was created by the government to develop economic growth and serve low-to-moderate-income residence for the purpose of providing affordable home loans in rural areas. In 2013 alone, USDA rural development provided $23.4 billion for purposes of purchasing and restoring homes in rural communities. This said, a Ohio USDA home loan makes the ability to achieve the dream of homeownership obtainable for qualifying home buyers. At this time,USDA Mortgage Credit Guidelines are more flexible than many other mortgage programs but there are some credit deficiencies that the USDA will not overlook no matter what the credit score.
The ability to finance any closing costs depends entirely on the value of the real estate appraisal. These closing costs include Conveyance Fees, also known as Transfer Taxes, that are paid to the State and Local governments. There are also costs paid to the title insurance company, and payments made on property tax bills and homeowners insurance. The USDA does allow the seller to pay up to 6% of the sales price towards the buyer’s closing costs. When the seller pays the closing costs of the buyer it is known as seller assistance. Usually, we find that the 6% seller assist is enough to cover the buyer’s closing costs.
My family was looking to buy abigger home in the suburbs of a pretty big city.I’m one of those people that wants to know all available options before pulling the trigger. Assuming there was no chance a “farm agency” home loan would fly in this area, I made the call anyway. I was floored to hear, “yep, that area is fine.” So glad I’m “one of those people” and made what I thought was a long shot call to learn about the USDA mortgage.
All USDA Guaranteed home loans come with flexible 30 year terms and are set at a fixed rate. Using the Single Family Housing Direct Self- Assessment tool, potential applicants may enter information online to determine if the Section 502 Direct Loan Program is a good fit for them prior to applying. Potential applicants are welcome to submit a complete application for an official determination by USDA Rural Development regardless of the self-assessment results.
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