If you’re like many people, you’ve heard of USDA homes for sale in Charlotte and the surrounding communities.
But what about USDA rural mortgage loans? Do you know what they are, who can apply for them, and why they exist?
What is a USDA Rural Mortgage Loan?
A USDA rural mortgage loan, which used to be called the “farmers loan,” is one of only two real 100 percent financing options (the other is the VA loan). That means there’s no down payment necessary; everything you need to buy the home is financed, and you’ll pay for it in monthly installments.
USDA Rural Mortgage Loan Restrictions
The USDA rural mortgage loan is restricted to rural areas, which rules out most of Charlotte. However, Waxhaw, Fort Mill, Tega Cay and a number of other areas outside Charlotte are typically eligible. (You can check an area’s eligibility here.)
What Are the Benefits of a USDA Rural Mortgage Loan?
If you’re using a USDA rural mortgage loan, you can count on:
- 100 percent mortgage loan-to-value based on the home’s appraised value
- No down payment or minimum contribution
- No limit on seller concessions
- Low mortgage insurance rates
- Competitive interest rates
- Flexible credit guidelines
The mortgage insurance you must buy for having no down payment can be rolled into your mortgage, which means you don’t have to pay it up-front in cash.
The good news, then, is that even if you’re having a tough time securing financing (or if you suspect you will) because of a lack of down payment, you may have another path to homeownership through a USDA rural mortgage loan.
Are You Looking for a Home in Charlotte or the Surrounding Communities?
Whether you’re searching for a USDA home for sale in Charlotte or you’d like to find the perfect place to live in Weddington, we can help.
Call us at 704-608-2794 to talk to a knowledgeable Charlotte Realtor® who can help you find the perfect place to live today.
You can also explore:
- All Charlotte, NC real estate listings
- Luxury homes for sale in Charlotte
- New construction for sale in Charlotte
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