Many people are asking me if the Covid situation is still having an effect on the real estate market. I see that we have a shortage of listings. I feel like many sellers are holding off
All About USDA Loans
I am sure you have heard of the USDA loans. I have had many buyers use them and were very happy with the process and results. You do have to make under a certain amount to qualify for these types of loans. The amount is based on your income and how many dependents you have. The more dependents you have, the higher the maximum amount is. You also cannot have too much debt. This loan has a lower debt to income ratio than some of the other loans out there. You also need at least a minimum credit score of 640.
The best things about these loans are first, you don't have to have a downpayment. A downpayment at the minimum is usually 3.5% which for example on a $100,000 home would save you in upfront cost of $3500 for your downpayment. You still would be responsible for your closing cost but there are ways to get those taken care of too! Secondly, USDA loans have a lower pmi payment. PMI stands for private mortgage insurace and is charged each month if you don't have 20% down.
The USDA loan is for cities that are under a certain population. Some of the cities in the general area that work with USDA loans at this time are House Springs, Hillsboro, Cedar Hill. De Soto, Pacific, Catawissa, Dittmer, Lonedell, St. Clair, Robertsville, Union, Gray Summit, Villa Ridge and part of Festus. If you ever have specific questions, contact me and I am happy to answer questions for you or give you a referral for a loan officer that will help you to get preapproved.
My contact info is 314 680 3030 call or text and email is firstname.lastname@example.org.
*Note at this time there is another conventional loan out that is a no money down loan but with a little higher interest rate.