“Does a USDA home loan mean I’m buying a farm?” I’ll answer that in this edition of “I Get This Question All the Time.”
Welcome to another segment of “I Get This Question All the Time.”
USDA home loans are popular across our area and, as such, I often get the question, “Does a USDA loan mean I’m buying a farm?”
In a word: No. Purchasing a primary residence with a USDA loan simply means the home is located in a rural area. Although the property can be an acreage, this isn’t your only option; it’s just that the USDA has classified the area as rural.
Much of Northern Colorado is designated as USDA, and as a zero-down program that allows for a credit score as low as 580, this type of loan is a great option for some buyers.
In order to qualify, bear in mind that your income must fall below the threshold established within that specific county and certain demographics play a part, such as your family size. This information, as well as the areas the USDA deems eligible, can be found on their website, so be sure to check that out.
As a zero-down program that allows for a credit score as low as 580, this type of loan is a great option for some buyers.
As always, if you have any questions regarding this program or for help with any and all of your real estate needs, please reach out to me by phone at 970-672-0010 or email me at Patrick@MyVelocityLending.com. I’d love to answer any questions you may have!