Linda Costanzo | Boston MA Real Estate, Chelsea MA Real Estate, Wellesley MA Real Estate


The US government has been helping Americans achieve their goal of homeownership for decades. Through programs offered by the Federal Housing Authority, the USDA, and the Department of Veterans Affairs, millions of Americans have been able to afford a home who would have otherwise struggled.

The focus of today’s post is one such service: loans offered through the USDA Rural Development program.

If you’re hoping to buy a home in the near future but are worried about being able to save up enough for a down payment or build your credit score in time, USDA loans could be a viable option.

Let’s take a look at some of the common questions people have about USDA loans:

Do I have to live in the middle of nowhere to get a USDA loan?

The short answer is “no.” rural development loan eligibility for your area is laid out on a map provided by the USDA. Most of the suburbs outside of major cities, as well as nearly all rural areas, are covered by the rural development program.

Can I qualify for a USDA loan if I’ve previously owned a home?

Yes. You may be eligible for a loan as long as you’re not the current owner of a home that was purchased through the rural development program. So, for example, if you own a home financed through the USDA and wanted to buy a second home and rent out the first one, you wouldn’t be able to finance your second home through the USDA.

How does the USDA loan guarantee work?

When you buy a home, a lender asks you to make a down payment. If you don’t have a down payment, the government (USDA, VA, or FHA) insures the down payment on your home rather than you paying it up front.

Will I have to pay mortgage insurance?

Unlike other subsidized loans, rural development loans require a “guarantee fee” rather than PMI (private mortgage insurance). The guarantee fee is 1% the total mortgage amount and this can typically be financed into the loan (so you don’t have to pay up front). In addition to the guarantee fee, USDA loans also charge an annual premium for the lifetime of a loan.

What are the qualifications for a USDA loan?

To find full eligibility information, complete the survey on the USDA’s eligibility website to find out if you qualify. However, the general qualifications are:

  • U.S. citizenship

  • Buying a home in a qualifying area

  • 24 months of income history

  • A credit score of 640 or higher for streamlined processing

  • Income high enough so that your monthly payments do not exceed 29% of your monthly earnings

What is the direct loan program?

The USDA really offers multiple urban development loans. The guarantee program, for which most single families utilize, and the direct loan program. Direct loans are designed for families who have the greatest need. You can also find out if you’re eligible for a direct loan by filling out the questionnaire on their website.




Here's your opportunity to live on the beach for an affordable price. 2 bedrooms, 2 baths with direct ocean views. Master bedroom has en suite bath and generous closet. Spacious living/dining area with private patio. Take a walk on the beach or a dip in the indoor heated pool. Gas fireplace & central air complete this unit.

More Info on this Property | New Listing Alerts


12 Hillview Ave, Boston, MA 02131

Roslindale

Rental

$2,100
Price

6
Rooms
2
Beds
1
Baths
Just beautifully renovated 2nd-floor unit. All rooms painted, hardwood floors refinished, new replacement windows throughout the unit. Kitchen has new appliances, new counter tops, cabinets, floor & pantry. 2 generous bedrooms plus a bonus room for den/study. 1 bath that's completely renovated with new tub, toilet, vanity, lights, fan & floor. Huge living room and separate dining area with tons of windows. All windows have new blinds. There is a back hall with pantry and enclosed rear porch. House has new roof. Basement has new washer/dryer exclusive to unit. Huge yard for your outdoor activities. This unit comes with 2 off-street parking spots in the driveway. This is a must see unit.
Open House
No scheduled Open Houses

Similar Properties




474 Revere Beach Blvd, Revere, MA 02151

Rental

$2,000
Price

4
Rooms
2
Beds
2
Baths
Here's your opportunity to live on the beach for an affordable price. 2 bedrooms, 2 baths with direct ocean views. Master bedroom has en suite bath and generous closet. Spacious living/dining area with private patio. Take a walk on the beach or a dip in the indoor heated pool. Gas fireplace & central air complete this unit.
Open House
No scheduled Open Houses

Similar Properties




11 Boston Street, Boston, MA 02127

South Boston

Condo

$429,000
Price

3
Rooms
1
Beds
1
Baths
You can have it all. Gorgeous 1 bedroom 1 bath 2nd-floor condo in the heart of South Boston. Sleek, modern kitchen with stainless appliances & sunny living room with hardwood floors. Extra large luminous bedroom that leads to your private outdoor deck where you can enjoy sipping your morning coffee or your after work cocktail. Need more outdoor space...walk down the stairs to the common patio....great for entertaining. Laundry in the basement along with additional storage space. Gas heat & central air too! Need to get to work in a hurry, jump right on the red line across the street at Andrew Square. Taking the car, jump on 93 right around the corner. Jog to the beach or grab a meal at one of the in vogue restaurants within walking distance. Did I mention minutes from the new South Bay Plaza too! Location, location, location...can't be beat. Low condo fee in this self-managed, pet-friendly, 100% owner occupied building. Yes, you can have it all!
Open House
Sunday
November 04 at 11:30 AM to 1:00 PM
Cannot make the Open Houses?
Location: 11 Boston Street, Boston, MA 02127    Get Directions

Similar Properties