The USDA Mortgage: the American Express of Real Estate
That’s reality for you, and you can’t blame the real estate market. There are, in fact, limits to how much you can borrow, even if your credit score is so pristine that you can apply for several million loans without flinching and pay all of them back in a heartbeat. But the USDA mortgage loan? That’s an entirely different beast.
Firstly, Let’s Look at Some Alternatives to the USDA Mortgage Loan
How about the VA mortgage? There’s a limit. Any conventional mortgage loan also has a limit. Both the VA and other loans generally don’t go any higher than $417K, so if you have a budget for more than that, better consult with your lender about the possibilities first. You might just be beating a dead horse to death.
Even the FHA with its benefits for the struggling prospective homeowner will have a limit: around $625K. And even then, you’re subject to certain requirements with the FHA loan, such as a high-cost area in Los Angeles, or maybe even Chicago and New York. Anywhere else, and that limit for the FHA will be a lot lower than you expect.
But that’s how the real estate market works…. Except you haven’t met Mr. USDA Mortgage.
Bear in Mind the Actual Mortgage Rules of This Program
The fact is this: the USDA mortgage loan actually has no written limit in their guidelines. That technically means you may just get approved for any amount. No matter how high.
You do, however, have to make sure the loan amount falls within the income limits and debt ratios associated with the USDA Rural Housing Program, and that’s a whole other ballgame to deal with. But for all intents and purposes, the USDA mortgage is a true dream miracle of real estate.
Just Play Your Cards Right
Sign up for the HOPE Program and ask about the USDA mortgage. Check out this Google+ page as well. It might be your ticket into a new home. Register to buy a home right now and ask the question: do I qualify? There are other aspects of the USDA mortgage you do need to know about, and you can find out what they are right here.Share