News You Can Use

You are probably familiar with USDA as a loan option for prospective home buyers.  As a reminder this program offers 100% financing with minimal mortgage insurance and there are geographic and income guidelines dictating when this loan can be used.  

Last fall USDA introduced monthly mortgage insurance into their program while simultaneously lowering the upfront guarantee fee that’s financed into the loan. Even with the addition of MI, USDA loans offer a low monthly payment for borrowers seeking a loan with 0% down payment.

A recent helpful update to the program was a slight increase to the income guidelines.  Now a family of four can have up to $78,800 in household income and qualify for a USDA loan.  Families with five or more members can have up to $104,000 in household income and be eligible. 

Keep in mind that the income calculated for USDA’s guidelines is total household income, not just what may be used to qualify for the loan.  In other words the loan may be approved based solely on a husband’s salary but his wife’s income must be accounted for in the USDA calculations even if she isn’t on the loan. 

You might not think many clients in the Charlotte area use USDA funding but with three areas of Mecklenburg County and large areas of surrounding counties falling in eligible areas, USDA loans can be an advantageous way for someone to purchase their next home.