What Are USDA Home Loans?
Currently, the United States Department of Agriculture (USDA) is providing great deals on low-cost home loans throughout the state of Missouri. These USDA loans are some of the best home loan opportunities in the entire state and all come with 100% financing, reasonable credit guidelines and absolutely no down payment. The Missouri USDA home loan program is one of the only remaining home loan programs in the country that still offer 100% financing and absolutely no down payment. And one of the best parts about the Missouri USDA home loan program is that almost every county in Missouri is eligible.
USDA Home Loans in Missouri
USDA Home Loans in Missouri are specifically designed to help promote home ownership for residents who have low to moderate incomes and currently have limited savings. Because many traditional home loans require down payments as high as 15-30% plus additional closing costs, it can be very difficult for a low to middle income household to afford these hefty upfront costs, even if they do have enough income to afford monthly mortgage payments. For households like these, USDA mortgages can be excellent home loan alternatives and give these households a real opportunity to purchase a home with little to no money upfront.
Benefits of a Missouri USDA Home Loan
Missouri USDA home loans come with a number of home loan benefits you won’t find in many other traditional mortgage programs. These benefits include:
- Up to 103.5% financing
- Low mortgage insurance
- No down payment
- Loan amounts up to $417,000
- No cash reserves required
- Low Interest Rates
- 30 year low fixed rate loan
- No Prepayment Penalty
- Closing costs can be rolled into the overall amount for the loan
How To Qualify
To be eligible for a USDA home loan in Missouri you must meet certain property and income requirements in order to qualify. First of all, your house must be located within a USDA eligible rural area. USDA eligible rural areas are typically any area that is mostly rural in nature or has less than 20,000 – 25,000 residents, depending on that county. This means that there are actually tons of great USDA eligible homes around major cities like St. Louis and Kansas city that are USDA eligible.
You must also have a modest income with a maximum household income of 115% of the median household income for that area. If your total household income is above that limit, you may not be able to qualify for a USDA home loan. You must have enough income to afford monthly mortgage payments, as well as other costs associated with owning a house including utilities, property tax, insurance, as well any previous debts you may have incurred. You must have a slightly above average credit rating, usually anywhere over a 640 score, and must not have any debts that have been in collections in the last 12 months. If you have an account that has been in collections in the past 12 months, then you will have to wait until the 13th month to apply.
To get started on your application for a Missouri home loan, fill out the form at the top of the page.
