New Bern NC is one of our favorite towns. We’ve been sailing in the Pamlico, and we’ve stayed there many times as our daughter was going back and forth to Camp Seafarer. It’s one of those small towns in NC that offers charm, and it’s easy to understand why folks would want to buy a house there! If you are buying a home here, one of the cheapest mortgage programs that you should look into are USDA Loans in New Bern, NC.
Many people we talk to have come to NC by way of leaving a home in another state behind. In that process, many people lost money – or certainly didn’t cash out large chunks of cash to put down on a new home in New Bern. The USDA Home Loans in New Bern, NC do not require any money for a down payment.
They are fairly cheap to in regards to closing costs, and it’s important to remember that they are for owner occupied mortgages (only). Sellers can contribute almost all of the money needed for the down payment, and in many cases, we can help you coordinate any Seller Contributions to the closing costs, just ask us about how the contract needs to be worded.Mortgage rates this summer are expected to go higher, however, USDA Loans traditionally carry the lowest interest rates available because the Fed is purchasing them. In addition to having a fairly low “entry” point in regards to cash needed to close, USDA home loans all have fixed, 30 year payments and the lowest PMI rates available… all combined to mean that the monthly payments on these loans are the lowest ones we are calculating right now.
FHA Mortgages have a maximum loan amount for each county. USDA Home loans do not have a maximum loan amount – however, the property must be located within the USDA “Eligibility” area. Below you will find the Craven County USDA eligibility maps as they currently stand.
Fortunately, we can find very few area affected with the “Future Eligibility” based upon the 2016 USDA Map Changes that have been announced. Unlike most of NC, New Bern will see very few changes to neighborhoods that will become ineligible later this fall. Remember that the “faint pink” parts on the map do NOT qualify for USDA Loans. All of the OTHER areas, however, DO qualify for the USDA RD Loan program.
In addition to meeting the credit score requirements and being sure that the home you buy in New Bern is eligible for the program, you will also need to meet the Household Income Requirements. The requirements for Craven County are based upon the annual median income for the county as reported each year. While they can change the household limits each fall, USDA limits for New Bern have been the same for 2 years.
The USDA Home Loans Maximum Income Limits for Craven County
- 1 to 4 people in the Household $74,750
- 5 or More in the Household $98,650
If your household income is over the limit, by a little, remember that we do have some flexibility and the USDA underwriting guidelines allow us to make adjustments to gross income based upon deductions on your tax return and child care that you are paying out in New Bern.
Along with the USDA Home loan program, we will try and qualify you for the NC Housing (I’ll refer to it here as NCHFA) program. If you have at least two credit scores over 640, it’s a great program! This loan is great for helping for qualify for a little larger home, and is offered to residents of NC who have not owned a primary residence in the past 3 years. So the MCC Mortgage Credit and the NC First Time Home Buyer Program, are not just First Time Homebuyers! NCHFA does apply different qualifying Income Limits and Sales Price Limits for Craven County, so you’ll need to be able to meet these stricter standards to qualify:
- NC Housing Income Limits for Craven County and the New Bern area (how to calculate income)
- NC Home Advantage Mortgage / Maximum Household income of $87,500 (no matter how many people live in the home)
- Mortgage Tax Credit 2016 – MCC / Maximum Household income of $64,000 if 3 or more people are in the household
- There’s no longer a Maximum Sales Price for First Time Home Buyer Program in New Bern whether you purchase a new or existing home.