Is a USDA Mortgage right for you?
USDA loans are mortgage loans that are insured by the US Department of Agriculture and they are available to qualified persons who are purchasing in areas that are not considered to be major metropolitan areas by USDA.
Advantages of USDA Loans
~100% Financing (no down payment needed)
~ Competitive interest rates
~ Monthly mortgage insurance is lower than most other loan types
~ Closing costs can be financed into the loan if the property appraises for more than the contract purchase price
Who qualifies for USDA Loans?
~Credit score of 620+
~ No current ownership in another home
~At least one year of job history with no major gaps. Other types of income are allowed and we can help you determine what types of income can be counted
~ Total household income must be under a certain threshold ($112,450 in most areas of South Carolina). This varies by county and see below for more details
~ The home you are purchasing must be located in an area that is eligible per USDA guidelines. These are areas that are not considered to be major metropolitan areas. The good news is that about 85% of the state of South Carolina is eligible for USDA financing. See below for more details
Additional info about USDA Loans
~ USDA guidelines require documenting the income of all income-earners who will be residing the home even if they are not on the loan application. So be prepared to provide the income documentation of other household members who have income
~ Like other types of mortgages, USDA loans will require an appraisal on the home that you are buying. USDA appraisals follow the same guidelines as FHA appraisals. USDA and FHA want to make sure that the home is sound and has no safety issues. They will ask that any of these type issues be addressed prior to your loan closing. The most common issues are peeling paint, rotten wood, and stairs or decks without handrails. If any of these issues exist, in most cases sellers will agree to fix them prior to closing ensuring that your new home is safe and sound
USDA income and area eligibility for specific areas in South Carolina
USDA loans in Newberry SC
USDA loans in Camden SC
USDA loans in Chapin SC
USDA loans in Orangeburg SC
USDA loans in Batesburg-Leesville SC
USDA loans in Winnsboro SC
USDA loans in South Carolina (all other areas)
If you would like to learn more about USDA loans, give us a call at 803-771-0080 or fill out the form on this page and we'll get back with you promptly.