USDA Loans in Greensboro NC

We make a ton of loans to folks who live in Greensboro.  We are especially attached to that area because that’s where our daughter is in college. IF you are interested in buying a home in Greensboro with the least amount of cash out of Pocket, we normally discuss qualifying for a USDA Loan. Why do we think USDA Loans in Greensboro NC are so great?  They require ZERO down payment, have the lowest mortgage rates and the lowest PMI rates available!

Unlike the NCHFA program, or the FHA Mortgage loan program, the USDA Home Loans in Greensboro, NC 27408 do not have a maximum loan amount or sales price.  Property requirements for the program are fairly simple.  The home is easier to qualify if it does not have outbuildings, is not an operating farm and does not come with an in ground swimming pool.  Recently we’ve seen appraisers ask for additional insulation, the thermal requirements for these homes are pretty strict.

To be considered for a USDA loan, the home must be within the USDA Eligibility Map “footprint.”  This is for sections of Guilford County that are less densely populated, and in an area most of us would consider rural.  The USDA Eligibility Map for Greensboro is changing in the next couple of years, and many areas will no longer qualify for the program.

USDA Loans in Greensboro NC

USDA Loans are cheaper than FHA loans in Greensboro? Why is that?  Because the FHA PMI rates are so high!  USDA loans have 30 year fixed rates with the best mortgage rates offered because the loans are currently being purchased by the FED, and guaranteed by USDA. These loans are only available for owner occupied loans, no non-occupying co-borrowers can be approved (although we can do that under the FHA loan).  The seller is allowed to help pay closing costs for USDA Home loans, and we often help folks who have Seller Concessions written in a Contract (those can be tricky!)!

USDA counts Student loan payments for deferred student loans (whereas VA loans don’t) and they require 12 months of clean credit.  We’ve done USDA loans for those with scores under 620 – but honestly, it’s very difficult to get these folks approved.  IT CAN BE DONE, if you are in that boat (as a ton of folks are) then you need to bring us into the discussion plan early!

USDA requires that the household income limits for the county not be exceeded.  If you have 1 to 4 people in your household in Guilford County, the maximum gross income allowed to qualify for a USDA loan is $86850.  If you have 5 people living in the household (even if a teenager for instance isn’t going to be on the loan but is earning money) the maximum income is $114,650.  If you are slightly over the limit, but you have tax return deductions, child care, disability or social security income we may be able to consider the “Adjusted” Income for your family – so if you have questions – please call us at 919 649 5058

We went ahead and printed off the USDA Eligibility Maps for Greensboro and the Guilford County area, 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.  The biggest change we think you will notice will be the areas near High Point and the northern sections of Greensboro near Summerfield which completely lost the program. If you are in an Incorporated City Limit – the homes no longer qualify for USDA Home Loan Financing.

This is the eligibility map from 2018.  The Next map is from August of 2019

This is the CURRENT 2019 map of eligible areas for USDA Home Loans in Greensboro NC

We understand, (from reading the actual USDA Home Loan Budget) that the Government is currently trying to close the Direct USDA Home Loan Programs in Greensboro – and that many other areas near Greensboro, NC are going to lose their USDA Home loan eligibility in September of 2020.  Once they update from the 2010 Census Maps with new 2010 data – more areas will be considered too densely populated for the program.

When we pre-qualify you for a mortgage in Greensboro, we will also look to see if you can benefit from the NCHFA programs.  While the programs were originally designed for NC First Time Home Buyers, they are offered to folks who are residents of NC and have not owned a primary residence in the past 3 years, meaning you don’t have to be a first time home buyer.  The program that is now in place requires 2 credit scores over 640, and with the changes.

If you are applying for the NCHFA First Time Home Buyer Program, there are different qualifying Income Limits based upon the program you are interested in. First Time Home Buyers, and others, benefit from these programs because they offer more purchasing power – especially as mortgage interest rates and home prices are higher this summer.

• 2019 NC Housing Income Limits for Guilford County and the Greensboro area
  • NC Home Advantage Mortgage / Maximum Household income of $89,500 (no matter how many people are in the household).  The maximum sales prices for these programs are set at $275,000
  • There are programs available that do not have maximum sales price limits, and they do NOT have to be used only for first time home buyers.
  • Mortgage Credit Certificate Maximum Household income of $72,000 with 1 to 2 people in the household, and $83,000 for families with more than 3 people in the home.

Connect with us on Facebook! If you have questions about qualifying for USDA Loans in Greensboro NC, call Steve and Eleanor 919 649 5058.