If you’re planning to purchase a rural home in the Las Vegas Valley, Blackmon Home Loans can help secure you a 502 Direct loan from the USDA. These types of mortgages are especially popular among first-time homebuyers because they have fixed interest rates, do not require a down payment, and have flexible credit score requirements chosen by the lender.
Who Is Eligible For A USDA Mortgage?
USDA loans are more flexible and easier to qualify for than conventional mortgages, but there are still a few requirements. In order to qualify for a USDA loan, you will need to:
- Have A Satisfactory Credit History, As Determined By The Lender
- Have A Stable Income Source
- Be Able To Make Monthly Payments On Time
- Be A U.S. Citizen Or Legal Permanent Resident
- Earn No More Than 115% Of The Local Median Income
Property-Based USDA Eligibility Requirements
In addition to being an eligible applicant, you will also need to demonstrate that the home you are purchasing meets certain requirements:
- The property must be located in an eligible rural area, as designated by the USDA.
- It needs to be connected to utilities and have direct access to a road, street, or driveway.
- You must be purchasing a single-family home, manufactured home, or unit in a duplex, triplex, or four-plex.
- You must be planning to purchase the home as your primary residence.
USDA Multi-Family Homes
In addition to the standard 502 loan program, the USDA also offers Section 538 loans for rural multi-family homes. These are a great option for rural landlords who want to provide low-to-moderate income housing to local renters.
USDA Vs. FHA Home Loans
Even though they are both backed by the federal government, a federal housing administration (FHA) loan is not the same thing as a USDA mortgage. To qualify for an FHA mortgage, you need to meet certain requirements and provide a 3.5% down payment. USDA loans do not require any down payment, but there are more restrictions on the type of property you can purchase.
How Can Our Mortgage Lenders Help?
It can be rather difficult to understand and navigate all of the eligibility requirements and paperwork necessary for securing a rural home loan on your own, but the Las Vegas mortgage brokers at Blackmon Home Loans can help spare you some of the confusion and stress that the process would otherwise entail. Contact us today to find out more about our loan application process and first-time homebuyer programs.