When I look back on my career as a mortgage lender, I don’t remember a mortgage program that’s had the same impact on the Real Estate Industry as USDA Loans in North Carolina. These are zero down payment mortgage loans, and since many home buyers dream of purchasing a home but don’t necessarily have the cash on hand to make the hefty 20% down payment required by a conventional home loan, they are perfect for first time home buyers.
USDA mortgages stand alone as the only zero money down program available to borrowers that have not served in the military. Eligible borrowers will be hard pressed to find a loan program that offers more favorable terms. They are NOT just for First Time Homebuyers in NC.
As the U.S. housing market improves, the cost of home ownership is rising. Home prices are up and mortgage rates are, too. The bottom of the market has passed. “Good deals” in housing still exist, however. Many first time homebuyers are considering a new home – and statistic across the state show that sales of single-family, newly-built homes are soaring. The problem with new construction is that you must often wait for the home to be finished before you can lock into your USDA Loans in North Carolina.
Furthermore, despite a 3 percent increase in available homes for sale, the national “housing supply” remains a scant 4.1 months. This means that at the current pace of home sales, the complete U.S. inventory of new homes for sale would go under contract no later than Labor Day.
This marks a half-month improvement from one year ago and agrees with recent home builder surveys which show that the number of home buyers previewing homes is at its highest rate since last decade.
With New home and Existing homes for sale being in demand, and the mortgage interest rates rising this summer – many people are hoping to buy a home using the USDA Loan program – before they get caught without the ability to use it! In North Carolina the USDA Home Loan Maps are scheduled to change – and with that change, over 25% of our state will lose the ability to offer the USDA Loan program.
Who Qualifies for a USDA Mortgage?
USDA Loans used to be considered “farm loans” but that is simply not the case anymore. In fact, if you contact us to purchase an operating farm- we probably won’t be able to help you! The Program for USDA Loans in North Carolina is designed for folks with fairly decent credit who is looking to purchase a home outside a major metropolitan area in NC. The minimum credit score for the program is between 620 and 640 – the seller can cover most closing costs, and if you haven’t owned a home in the last three years, we might be able to qualify you for the NCHFA /NC Affordable Housing Mortgage Tax Credit.
Some of the USDA loan Requirements include income limits which vary per county as well as by the number of dependents you can claim. The property needs to be within the USDA Home Loan footprint, and as we stated earlier USDA Loans in North Carolina will see a significant change in September when the USDA Maps change. Because these guidelines are very specific, it is important to work with a company that has experience dealing with USDA government financing to help determine your eligibility (Hint, Hint… we do tons of USDA HOME LOANS!)
If you have questions about purchasing a home in NC using a First Time Homebuyer Program, or you want to know more about closing costs for a first time home buyer program in NC please call Steve Thorne at 919-649-5058. We do many NCFHA loans, we offer today’s lowest mortgage interest rates, we can help!