What is a USDA Home Loan
The USDA Rural Development home loan program is for first-time homebuyers and move-up buyers in Virginia. A USDA loan is a 100% home loan on a 30 year fixed rate with zero down payment required. USDA loans are for borrowers in USDA designated rural areas that are at or below the moderate income which is determined by the area the property is located. USDA is very broad on their definition of rural so many suburban areas in Virginia qualify for a USDA loan. To be eligible for a USDA loan, applicants must meet the basic eligibility requirements set forth by the USDA, which cover credit, income, property usage, and home location. Single-family homes, townhouses, and condos are all eligible for a USDA loan. USDA charges an upfront fee, which can be financed into the loan, and a monthly fee to guarantee the loan, this allows borrowers to get 100% loan on a 30 year fixed rate that is often lower than a conventional loan.
If you currently own a home you may still be eligible for a USDA loan. If your current home is going to be sold before closing on the new home then you may still be eligible for a USDA loan. We can help you determine if the home needs to be sold before you purchase your new home.
If your shopping for a USDA loan, we’d love to help; we offer USDA home loans in Virginia including Christiansburg, Radford, Marion, Abingdon, Wytheville, and the surrounding areas.