If you are looking to buy a home in a rural or suburban area, you may be eligible for a USDA mortgage in Asheville NC. USDA loans are backed by the U.S. Department of Agriculture and can be a great option for buyers who are unable to qualify for a conventional mortgage.
What is a USDA Loan?
A USDA mortgage is sometimes also called a “Section 502” loan, which refers to the section of the Housing Act of 1949 that created the program. USDA mortgages are issued by participating lenders and guaranteed by the U.S. Department of Agriculture. The loan guarantee means that if you default on your loan, the USDA will pay off your lender. USDA mortgages are available for both purchase and refinance transactions.
Am I Eligible for a USDA Loan?
To be eligible for a USDA mortgage in Asheville NC, you must meet the following criteria:
- You must have a credit score of 640 or higher
- You must have a debt-to-income ratio of 41% or lower
- You must be employed full-time with a steady income
- You must be a U.S. citizen or permanent resident alien
To be eligible for a loan, you must have good credit, a steady income, and meet other requirements set forth by the program. If you think you may be eligible, speak to a participating lender about getting pre-qualified for a loan today. There are many benefits to getting a USDA mortgage in Asheville NC.