USDA Home Loans

If you haven't looked into the real estate market at the Lake of the Ozarks in several years, you probably think that you still need a 20% down payment to buy a home. Nowadays, however, that simply isn't the case. There are now some loan options that allow you to buy a Lake of the Ozarks home with a 5% down payment - and even a 0% down payment.

 Yes, you read that correctly. USDA offers a home loan program that will provide 100% financing.

USDA Home Loan Background Information

USDA mortgage loans are designed to make home ownership accessible to low- to moderate-income families in rural areas. Luckily for you, the USDA defines "rural" in such a way that most homes in Camden, Miller, and Morgan counties qualify. Depending on your household income, you may be eligible for 100% financing (and lower interest rates) the next time you buy a home at the Lake of the Ozarks.

Benefits of a USDA Home Loan

USDA home loans allow you to finance 100% of your home. You can even add the cost of the mortgage insurance fee that USDA requires and eligible home repairs into the total loan amount. By adding these extra costs into the total amount of the loan, you are able to save money on closing costs and other upfront expenses associated with buying a home.

Thanks to their below average insurance rates, USDA home loans are very affordable. They are structured very similarly to conventional loans (monthly payments toward a 30-year mortgage are standard), but they do not charge the same fees of conventional loans. For example, if you take out a conventional loan with less than 20% down, you will be required to pay for private mortgage insurance (PMI) until you've paid back 20% of the principle. Instead of this conventional PMI practice, USDA assesses a one-time 2% fee of the total loan upfront (which can also be financed through the loan) and a 0.4% annual fee. As you pay back your loan and your principle decreases, then, so will your annual fee.

USDA Home Loan Qualifications

In order to qualify for a USDA home loan, you must meet two primary requirements:
  • The property must be in a USDA-eligible area
  • The buyers' household income must not be greater than 115% of the area's average income
A mortgage lender can help you determine whether or not you meet these criteria. You can also go to this website and search your property address to see if it meets the rural qualifications. 

By the way, you only have to meet the above income requirements when you take out the loan. There is no problem with increasing your income after you have begun making payments on the loan.

Gattermeir Davidson Can Help You Find Your Dream Home!

Buying real estate at the Lake of the Ozarks is more affordable than you think. If you and your family are ready to purchase a new home, come see us at Gattermeir Davidson Real Estate. We would love to work with you to find your dream home!

 Stay connected with Gattermeir Davidson Real Estate, LLC!

2011 REALTOR Salesperson of the Year
Missouri Association of Realtors

Gattermeir Davidson Real Estate, LLC
752 Bagnell Dam Blvd., Suite A
Lake Ozark, MO 65049

Office | 573.365.1555
Fax | 573.365.1766

Location: Lake Ozark, MO 65049, USA

Comments

  1. UnknownAugust 26, 2016 at 4:13 AM


    Read your blog its really informative and helpful keep updating with newer post on house loan interest rates

    ReplyDelete

Post a Comment

Popular posts from this blog

5 Home Buying Mistakes To Avoid

Image
Buying a home is a very exciting event, but it unfortunately comes with its fair share of pitfalls. Inexperienced home buyers may fall victim to common mistakes that can create added stress and frustration down the road. If you're getting ready to buy your first home at the Lake of the Ozarks , the team at Gattermeir Davidson Real Estate can help you avoid these pitfalls. Mistake #1: Not Getting Preapproved It's very common for first time home buyers to want to jump straight into touring different homes, before talking to a mortgage lender. When they do this, though, home buyers can get their hearts set on a certain property before they know for sure if they will be able to afford it. Do yourself (and your agent) a favor by getting preapproved for a home loan first so you will only visit homes you know you will be able to realistically consider buying. Mistake #2: Spending Beyond Your Means There can be a big difference between the size of loan you can qualify for and
Read more

Lake of the Ozarks offers a Great Shopping Experience!!

Image
Lake of the Ozarks is the place to be for great shopping!  You can find an assortment of items from high-end designer outlets to famous department stores and small unique boutiques. The Osage Beach Premium Outlet Mall has over 100 stores to choose from  like Adidas, Ann Taylor, Banana Republic, BCBG Max Azria, Calvin Klein, Coach, Gap, Under Armour, Tommy Hilfiger and Nike.   The outlet mall will cover your shopping needs from head to toe with women’s and men’s fashions, kid’s clothing, beautiful jewelry and footwear.  If you are buying a Lake of the Ozarks Home , you can find all sorts of home decor!!  For a complete listing of all the shops that Osage Beach Premium Outlet Mall has to offer, visit www.premiumoutlets.com Blair's Landing is such a quaint little area and offers a unique experience in a boutique shopping center.  You can find up-scale apparel, antiques, a candy shoppe, pastry shop and unique shabby chic items. Blair's Landing may be small but it will definit
Read more

Ozarks Amphitheater GRAND OPENING

Image
Big things are happening at the Lake of the Ozarks! This Thursday, June 18th at 7:00 PM marks the grand opening for one of the Lake Area's hottest new attractions: the Ozarks Amphitheater ! Ozarks Amphitheater Grand Opening - Thursday, June 18th In order to celebrate their grand opening, the Ozarks Amphitheater will host a fantastic concert with FREE ADMISSION to anyone who wants to come! The award-winning blues vocalist Sena Ehrhardt will be delivering the grand performance, and local musician Shawn C will serve as the opening act. To top it all off, Ozark Distillery will be offering free tastings! Lake TV Sports Director / TV Personality William Holtz will host the event. Ozarks Amphitheater will also be accepting donations for C.O.P.S. (Concerns Of Police Survivors) . Here's a quick rundown of the evening's timeline: 7:00 PM - Doors Open 8:00 PM - Show Begins 9:30-10:00 PM - Meet N' Greet Admission is free, but Ozarks Amphitheater requests t
Read more