USDA Loans

Dominion Mortgage and Financial Services certainly appreciates some of the rural settings in the Greenville-Spartanburg-Anderson area, which is why we are proficient in USDA loans.

Awarded through the United States Department of Agriculture, USDA loans have the official label of “USDA Rural Development Guaranteed Housing Loan Program”. Borrowers will also regularly hear USDA loans referred to as “rural housing loans”, even the “Section 502 Loan”, since it is based on the program’s standing in the USDA’s charter. 

Be it you’re a first-time home-buyer in Spartanburg in search of a loan sans a substantial down-payment demand, or you’re a repeat buyer in Anderson who wants excellent cost-to-space value, a USDA loan can be a big benefit.

As far as refinancing, the USDA has programs such as the “USDA Rural Refinance Pilot Program” and the USDA Streamline Refinance Program on hand. 

It’s a 30-year fixed loan that was devised to persuade prospective homeowners to give consideration to approved rural areas outside the center of crowded cities. Manufactured and modular homes qualify, as well as suburban areas that meet certain criteria. Also, 100% of a property’s sales cost may be funded.  

Property requirements are enforced by the USDA to assure its loans are indeed being applied to a qualified rural location. To fully verify if their location qualifies, borrowers should consult with a USDA loan specialist. 

A generic criterion in predetermining if a property qualifies is if it is in an area with a population less than 10,000 then it is eligible. A property with less than 20,000 people can qualify if its surrounding area is scarce of significant mortgage credit. 

A popular attraction for USDA loans are their reduced credit score demands and no maximum loan limits. Instead, loan amounts of determined by a combination of debt-to-income ratio, credit history, income and past housing payment history. 

Rural housing loans are backed by the government, and borrowers are rarely met with much resistance when attempting to qualify. USDA loans are guaranteed from losses by the Department of Agriculture, which subsequently leads to borrowers being presented 0% down-payment conditions and low interest rates due to banks seeing little risk. Many times USDA loans close within 45 days. 

Borrowers also typically find mortgage rates for USDA loans lower than rates for FHA, VA and conventional mortgages. Particular to FHA loans, USDA loans possess far lower mortgage insurance premiums, as the four-tenths of 1% per-year on an annual basis.

It also must be noted that guarantees for mortgages will not come into effect if a household exceeds its area income limit. The USDA imposes this to assure its loans are most appealing to households and families with restricted earnings.

A household’s total yearly compensation shall not be more than 15% of the median for a household in its surrounding area, though regard is held for its capacity. Households of eight or more members receive an extra 8% per additional member with a cap at four.

Dominion Mortgage and Financial Services excels in the Greenville-Spartanburg-Anderson area in South Carolina. The loan limits for each location are below:

Greenville County:
 

Program     1-Person 2-Person 3-Person 4-Person 5-Person 6-person 7-Person 8-Person
Very-Low Income $20,650  $23,600 $26,550 $29,500  $31,900 $34,250 $36,600 $38,950
Low Income $33,050 $37,750 $42,500  $47,200 $51,000  $54,750 $58,550 $62,300
Mod. Inc-Guar. Loan $74,750 $74,750 $74,750 $74,750 $98,650 $98,650 $98,650 $98,650
 
 Spartanburg County:
    
Program     1-Person 2-Person 3-Person 4-Person 5-Person 6-person 7-Person 8-Person
Very-Low Income $19,950 $22,800  $25,650 $28,450   $30,750 $33,050 $35,300  $37,600
Low Income $31,850 $36,400 $40,950 $45,500 $49,150  $52,800 $56,400 $60,050
Mod. Inc-Guar. Loan $74,750 $74,750 $74,750 $74,750 $98,650 $98,650 $98,650 $98,650 
                    
Anderson County:
                                                          
Program     1-Person 2-Person 3-Person 4-Person 5-Person 6-person 7-Person 8-Person
Very-Low Income $19,650 $22,450  $25,250 $28,050    $30,300 $32,550 $34,800  $37,050
Low Income $31,450  $35,900 $40,400 $48,500 $49,150  $52,100 $55,700 $59,250
Mod. Inc-Guar. Loan $74,750 $74,750 $74,750 $74,750 $98,650 $98,650 $98,650 $98,650 
                                                   
In relation to the specific housing unit, a state-licensed inspector must conduct an inspection to assess if the property is up to standard. Below you’ll find several components inspectors will evaluate:

•    Running water, plumbing system and sewage disposal
•    Modern electrical systems functioning properly
•    Any termite or pest destruction
•    Cooling and heating units operating properly

The home needs to be in sufficient structural standing, functioning adequately and in decent repair. In any case of significant deterioration, borrowers may access financing to enhance the property.

Constructing a new home in a rural area is an appealing option, and USDA loans can be applied. Borrowers must be knowledgeable of their location’s standards for dwelling before the outset of construction.

A state-licensed contractor must be chosen by the borrower needs to be authorized by the loan officer. A conference will be held between the borrower, loan officer and contractor to confirm the building plans are up to USDA standards. The contractor receives their final installment upon completion of the construction of the home. 

Dominion Mortgage and Financial Services would be delighted to help you begin acquiring a USDA loan! Call today at (864) 224-3302