USDA LOANS

USDA Loans

Asheville – Buncombe County USDA Loan Eligibility

Also called, Section 502 Guaranteed Loans, USDA is probably the best loan out there (better than VA or FHA).
The Loan:
  • At least 30 year fixed (typically 33 years, but may be extended to 38 years if qualified)
  • No maximum loan amount
  • Low mortgage insurance (0.5% annual fee = $500 on $100,000 loan)
  • Best interest rates
  • Low to no down-payment
  • Loans may be up to 102% of Market Value
  • Deduct $480/child and cost of child care expense to arrive at adjusted income

But there are some criteria that you must meet as well as the home in question.

Criteria for the Loan Borrower:
  • You can not own another home within 50 miles of the home
  • Your credit must be at least 640
  • You must be a US Citizen
  • Have an adequate and dependable income and meet USDA-RD county adjusted income limits (1-4 People in home Income Max = $75,750, 5-8 People in home Income Max = $98,670)
  • Income is based on all persons who will live in the home
Criteria for the Home:
  • Must be located in an eligible area ( http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do ) (CHOOSE FROM THE MENU ON THE LEFT)
  • Can be Site Built, Modular, Townhome, Condominium, New Construction, 1/2 of Duplex, or New Manufactured home (any Clayton Home)
  • Can not have a garage apartment or mother-in-law suite
  • Can not be income producing property
  • Must be primary residence (no rental home or second home)
  • No large farm, no cell phone tower, no equestrian improvements, no wind turbines
  • The land must not contribute more than 30% of the property value
  • Acreage must be 1 acre or under (will be changing in December 2014)
  • Home must be in livable condition
  • Home must not be on spring water

2 thoughts on “USDA LOANS

  1. Reply
    kara girard - September 23, 2015

    Hello,
    My husband and I are looking into homes in Chimney Rock around the 100,000 mark. We went to the usda eligibility site and it said we were eligible and all of the homes we were interested in were eligible. Could we go through the loan application process through your office? We do not know where to go.

  2. Reply
    Kim Zorn - December 1, 2016

    I found your name on line. Can you help me get a USDA loan? How do I apply for this?

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