Some are surprised to hear that the USDA (US Department of Agriculture) provides financing for home purchases. The mortgages can be used for real estate in specific non-metropolitan towns and have optional terms and features. This blog provides MA USDA mortgage options.
MA USDA Mortgage Options
Benefits of USDA Programs
- The loan is completed by local authorized mortgage companies.
- Real estate can be financed up to 102% of the market value.
- Both new purchases and refinances qualify.
- Contract to common perception, USDA is used for more than farm land.
- The loan applies to single family and multi-family properties.
- Specific upgrades can be rolled into the mortgage.
Approved Zip Codes
USDA creates a list of rural or semi-rural areas in which USDA financing can be used. Buyers are normally surprised to see specific towns on the list as many are not as rural as assumed. To verify eligibility for MA and surrounding locations, visit the USDA Home Loan website and click on either single family or multi-family in the Property Eligibility menu in the top left section. You must enter a state and zip code to see a color coded map.
Qualification Criteria
Qualifying for a USDA program is similar to qualifying for an FHA program. Buyers should have decent credit, stable income, and the ability to repay the loan. <a Income guidelines vary by state, county, and number of people in your household. USDA loans can take more time to process than conventional loans, so be prepared.
Getting Help
Find a reputable local mortgage that is approved to offer USDA loans. Obtain a pre-approval in advance and know the requirements and options in advance of making an offer on real estate. Contact Christopher Graves at 781-759-1200 x22 or christopher.d.graves@gmail.com for specific MA USDA mortgage options.