Ohio USDA Home Loans
If you live in the Buckeye state and you’re having trouble finding a great deal on a home loan, you may want to check out what the Ohio USDA loan program has to offer. The Ohio USDA home loan program, also known as the Ohio Rural Development Loan program, is a 100% government insured mortgage that allows Ohio residents to purchase a home in a rural property with absolutely no money down. Ohio USDA loans come with 100% financing, reasonable credit guidelines, and even allow for all closing costs to be paid by the seller or financed into the overall amount of the loan. Ohio USDA home loans offer some of the lowest mortgage rates out of any other home loan program in the country, come with flexible 30 year fixed rate terms, and are specifically designed for lower to middle income buyers.
Property Eligibility Requirements
To be eligible for USDA Home Loans in Ohio, the property you’re looking to purchase must be located in a USDA eligible rural area. USDA eligible rural areas include any open rural area, places with a population under 10,000 residents, as well some areas with populations between 10,000 – 25,000 as long as they are located outside of major Metropolitan areas. This means that there are actually hundreds of beautiful USDA eligible properties that are located in small suburban communities not too far outside of major Ohio cities such as Columbus and Cincinnati. Almost every Ohio county has USDA eligible homes. The only Ohio counties that are completely ineligible are Cuyahoga and Summit counties.
USDA eligible housing must be modest in size, design and cost and must meet all government observed development standards.
Types of USDA Loans Available
There are currently two kinds of USDA rural home loans available to qualified Ohio single family residents. These are USDA Guaranteed Rural Home loans and USDA Direct Rural Home loans.
USDA Direct Rural Home Loans
USDA Direct rural home loans are less common than USDA Guaranteed home loans and are only available for low to very low income households. For a household to be eligible for a USDA Direct home loan they must have an overall household income that is either below or in between 50-80% of the area median income. USDA Direct home loans are financed directly by the USDA and usually come with longer 36 year fixed rate terms.
USDA Guaranteed Rural Home Loans
USDA Guaranteed rural home loans are the most common type of USDA loans and allows for higher income limits and 100% financing for home purchases. To be eligible for a USDA Guaranteed home loan applicants may have an income of up to 115% of the median household income for that particular area. All area income limits can be viewed at the USDA website or can be accessed through your USDA approved lender. All USDA Guaranteed home loans come with flexible 30 year terms and are set at a fixed rate.
