Connecticut USDA Mortgage Loans

Hello again everybody, this is John Vecchitto with North-East Financial.  I will be talking to you about USDA purchase loans and how you could qualify for one today!

To begin, USDA stands for the United States Department of Agriculture. Sometimes, this is also referred to as a Rural Development Loan. A USDA loan is a government insured home loan that allows you purchase a home with NO Money Down. USDA Loans offer 100% financing to qualified buyers, and allows for all closing costs to be either paid for by the seller or financed into the loan. USDA offers some the lowest rates of any loan, and you will always have a fixed interest rate. Currently, they offer 30 year fixed rates just for residential properties. Furthermore, USDA only makes loans on owner-occupied purchases. Investment properties do not count.

To be eligible for a USDA loan, there are some qualifications to be met just like any other government loan. The first is your income. USDA will want to see a two year employment history without any gaps, along with the last two years W-2′s, and two recent pay stubs. Second is your credit worthiness. Generally a credit score of 640 is sufficient and any collections or judgments should be paid off. The final qualification is where you live. To qualify for a USDA loan you must live in an area they deem eligible. I have included a link at the bottom to anyone who would like to see if a home qualifies. I was surprised at how many towns near my hometown of Portland were eligible.

By now you’re probably asking yourself, why should I get a USDA loan? There are a lot of great benefits to this type of loan. For me, the biggest advantage was NO MONEY DOWN. In my small town, a lot of young adults would like to own a home, but don’t have money for the down payment. USDA is one of the few programs out there that allow a borrower to purchase a home and not put anything down. On top of that, USDA also allows a borrower to finance the closing costs.

In conclusion, if you are one of the many residents of Connecticut who would like to own a home but don’t think you qualify, give me a call about a USDA loan today. The staff at North-East Financial and myself are more than qualified to answer any questions about these loans or any of the others we offer. Your dream of home ownership can come true sooner than you think!

To see if your property is eligible, please call me today and I can assist you