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

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