USDA Loans

At Mortgage Team 1 we specialize in helping you make your dreams of homeownership a reality. We pride ourselves on excellent customer service and client satisfaction while providing some of the most competitive rates throughout Alabama.
 
For homebuyers looking to develop a rural property or purchase a rurally located home, a USDA Loan is a great option. This loan type is also known as the USDA Rural Development Guaranteed Housing Loan Program and is backed by the United States Department of Agriculture. A USDA loan is aimed at assisting low to moderate income rural homebuyers in America to afford home ownership.
 
The United State Department of Agriculture offers several types of USDA loans and finding the best option will depend on your situation.  A guaranteed loan allows applicants to have up to 115% of the median income for the area.  To qualify for a guaranteed loan, a borrower must be without adequate housing and additionally be able to afford loan payments including taxes and insurance. These guaranteed loans offer 100% financing to those who qualify and allow the closing costs to either be financed in the loan or paid for by the seller.
 
In order to qualify for a USDA loan, the property must be located within approved USDA locations, also known as a footprint.  Please contact us at (251) 650–0805 to see if your area qualifies for a USDA loan.
 
Another type of USDA loan is a direct loan.  This loan allows Americans access to purchase a property in a rural location.  Financing can be used to build, repair, renovate, or relocate a rural property. It can also be used to prepare building sites such as providing adequate water and sewage facilities. 
 
In order to qualify for a direct USDA loan, an applicant must have an annual income that is no more than 50% of the median income for the area. They also need to be without adequate housing and be able to afford monthly payments including taxes and insurance. Borrowers must also not be able to receive financing from any other loan type.
 
The final type of USDA loan is a Rural Repair and Rehabilitation Loan.  These loans are available to very low income Americans looking to repair, improve, or modernize their homes in addition to removing safety and health hazards who are also older than 62 years of age.
 

Please contact us today at Mortgage Team 1 to see if a USDA loan is right for you!