Struggling to Purchase a Home
Ever since the founding of this country, the dream of home ownership has been central to the American dream of freedom and prosperity. However, with this stagnant economy and a housing market that has improved little since the mortgage meltdown, it has rarely been this difficult in American history to get approved for a home loan. With lenders tightening their lending restrictions, homebuyers now either have to have excellent credit, or need to come up with a substantial down payment of upwards of 20-30%. If you’re one of these struggling Americans who have enough income to afford monthly mortgage payments but are struggling to get approved for a home loan, there are other options available. And one of those options is the Virginia USDA home loan program.
Virginia USDA Home Loans
USDA Home Loans in Virginia stand alone as one of the most affordable and buyer friendly mortgages in the country. One reason why USDA loans are so attractive is because they’re one of the only mortgages programs available to the general public that requires absolutely no money down. Not only that, but USDA loans historically come with lower interest rates than traditional home loans, and come with 30 year fixed rates. USDA loans require low mortgage insurance, come with 100% financing, and even allow for you to finance all your closing costs into the overall amount of the loan. This way, you can practically purchase and move into a Virginia USDA eligible home, with little to no money upfront.
USDA Eligible Properties in Virginia
The only main drawback to the USDA home loan program is that it is not available in all Virginia areas. Larger cities such as Virginia Beach, Manassas, and Roanoke are not eligible for USDA loans. USDA rural home loans are only available in predominantly rural Virginia areas, or small suburban communities with less than 20,000 residents. USDA eligible properties must also be able to pass a home inspection, and must be up to state and local code.
Also, if you have received a USDA loan in the past, and still currently live on a USDA eligible property, you may be eligible for the USDA loan refinance program. Refinancing your current USDA loan will result in a lowering of your monthly mortgage principle and interest payments.
Who Is Eligible?
In order to be eligible for a Virginia USDA home loan the applicant must meet certain USDA home loan requirements. Because the USDA rural home loan program was created to help struggling individuals and households afford mortgages in rural areas, there are various income limits in place to make sure more affluent individuals don’t abuse the program. To be eligible for a USDA loan in Virginia the applicant’s total annual household income must not exceed 115% of the average median income for that area. Income limits vary from county to county and from state to state, and are higher for households with 5 or more individuals.
You must also have an above average credit rating with no payments that are currently in collections. While there is no stated minimum credit score for the USDA home loan program, lenders will generally not work with an individual if their credit score is below 580. However, certain lenders may be willing to work with you if you can show that you have steady income, have a solid rent history, and that your low credit score is due to circumstances beyond your control.
