The Mississippi USDA loan is a home low designed for low to moderate-income families in rural areas that are back by the Department of Agriculture.
There are several benefits of the Mississippi USDA home loan. The most popular feature of this loan product is the 100% no money down feature. Additional attractive features are flexibility with credit, no maximum loan size, seller paid cessions up to 6%.
No, oftentimes buyers have used the Mississippi USDA mortgage loan previously and are eligible to use it again. The only rule related to previous homeownership is that a buyer cannot have another home and utilize the Mississippi USDA mortgage loan. In most instances, the buyer sells their current prior to closing on their new home. It's not uncommon for both closings to happen on the same day.
Closing costs will vary from property to property and lender to lender. To get an accurate number it's encouraged that you speak with your lender. The seller can pay up to 6% of the sales price towards the buyers closing costs. For example, if the sales price is $150,000 the seller can pay up to $9,000 of the buyer’s sales price and escrows. In most cases, this would be more than enough to cover everything.
The USDA eligibility map is the fastest and easiest way to determine a property's eligibility for the USDA single-family housing program. The map is very user friendly. It has a search feature that allows the user to enter and specific address and it will be indicated if the property is eligible. If the homebuyer does not have a property picked out yet they can just do a general area search to see what areas around them qualify.
Interest rates will vary from lender to lender. The interest rate on the USDA mortgage is usually in line with the FHA and VA home loans.
Yes, homeowners that have a USDA home loan pay extra on their mortgage. By doing so they can save money because extra payments above and beyond the normal payments direct principal reductions so interest is not charged on the extra money. If a homeowner chooses to do so they can also pay their mortgage off at any time with no penalty.
Yes, the home can have a swimming pool with the USDA loan Mississippi. The loan product does require the pool to be in working order and not to have any safety or repair issues.
The Mississippi rural development loan does not have a set limit on acreage with a home. The issue some homebuyers run into when there is excess acreage is that the value is more on the land than the home. The rule that most lenders follow is 30%, Which means that no more than 30% of the value of the home can be in the land. The other challenge with excess land is that appraisers often times have problems finding comparable sales.
The USDA direct home loan is when a homebuyer works directly with their local USDA office to obtain a USDA no money down loan. The USDA guarantee is when a home buyer works with a private lender to obtain a USDA loan. The government still insures these loans and the underwriting guidelines are very similar.
The Mississippi rural development loan has something very similar to mortgage insurance and it’s called a guarantee fee. There is an upfront guarantee fee and a yearly guarantee fee. The upfront fee is 1% and it is added to the loan amount. The yearly fee is .0035% of the loan amount and is paid monthly.
Yes, the Mississippi USDA mortgage does allow homes to have a septic tank. It is very common in rural areas for homes to have these types of systems. The must be in working order and functioning properly.
No, the USDA home mortgage is for primary residences only
No, all borrowers with the Mississippi USDA loan must live in the property
The Mississippi USDA household income rule relates to the total income in the home. By definition, the USDA loan is for low to moderate-income households. The maximum allowed income can vary from county to county so it’s important to look up the limit for the county you are interested in purchasing in. The USDA single-family program allows households to have a total income up to 115% of the median income for a given area.
Yes, the USDA loan does allow buyers to have had a previous foreclosure. They must be three years removed from the event.
Yes, self-employed borrowers can participate in the Mississippi rural development home loan program. It will be up to the lender in the documentation they require but most lenders ask for the last two years' tax returns and a current profit and loss statement.
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Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.