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A Nebraska USDA loan is a residential home loan backed by the USDA. The program falls under the single-family housing program. It is a 100% no money down home loan. The loan program was designed for low to moderate-income families in Nebraska and around the country. To be eligible, the property must be in a qualifying area.
Determining a property's eligibility is very easy to do. The USDA website has an eligibility map that anyone can use. The map has a place where the user can enter the address, and the map will indicate if that specific property is eligible. The USDA eligibility map also allows users to search for areas that are eligible. The map uses a color-coded system to indicate what areas are eligible and what areas are not eligible.
The Nebraska USDA loan has a guarantee fee, which is very similar to mortgage insurance. The guarantee fee is found in two different places. There is an upfront guarantee fee and a yearly guarantee fee. The upfront fee is 1% of the total loan amount. This is considered a closing cost, but instead of being brought to closing, it is added to the loan.
It has a very small impact on the overall payment. The factor used for the yearly fee is .35%. This fee is paid out monthly.
Yes, the Nebraska USDA home loan does allow up to 6% seller paid closing costs. An example will be if the sales price is $128,000, the seller can pay up to $7,680 of the buyer's closing costs and pre-paid items. In most cases, 6% is usually enough to cover a large part of these fees.
Some areas of Nebraska are in a flood zone, and in those cases, homebuyers that use the USDA home loan will be required to obtain flood insurance. If the property is not in a flood zone, then flood insurance will not be needed. If you check with your loan officer on the front end of the transaction, they can usually do a quick search to determine if the home is in a flood zone.
USDA interest rates will vary from lender to lender, so it is always a best practice to speak with your loan officer to see what their rate is. Generally, USDA rates are in line with FHA rates and VA rates.
The Nebraska USDA guaranteed loan does not have a maximum loan requirement in place. If a homebuyer meets the household income requirements and other credit and debt to income requirements, they can usually purchase at any price point.
The Nebraska USDA direct loan is when a homebuyer works directly with their local USDA office to obtain the USDA home loan. The Nebraska USDA guaranteed loan is when the homebuyer works with a local bank or private lender to obtain a USDA home loan.
The most popular feature of the USDA loan Nebraska is the 100% no money down feature. Homebuyers can put money down if they choose to do so. When a homebuyer puts money down, this will help lower the monthly payment.
Yes, homes with a swimming pool are eligible for a USDA loan. The pool must be in working order and fully functional. There can not be any safety issues.
Homes that are in need of major repairs such as foundation issues are not typically eligible for the USDA home loan. It is always best to speak with your loan officer and discuss the needed repairs on the front end of the transaction.
No, the Nebraska USDA loan is only for a homebuyer's primary residence, and investment properties are not allowed.
No, the USDA home loan requires all borrowers to occupy the property as their primary residence. The FHA home loan, however, does allow this.
No, the USDA loan Nebraska does not have a pre-payment penalty. Homeowners can make extra payments above and beyond their normal payment at any time with no penalty. They can also pay the loan in full at any time with no penalty.
The USDA home loan household income limits are in place to make sure that the loan is being offered to its intended audience. By design, the loan is for low to moderate-income families. The USDA home loan uses the median income for a given area and allows up to 115%. This will vary from county to county.
Yes, USDA rural development loan does allow borrowers to participate after they have had a foreclosure. Borrowers are required to be three years removed from the event.
While there is not technically an acreage limit on the Nebraska rural development loan, there are some potential issues. The first issue is when the value of the lands exceeds 30% of the overall transaction value. When this happens, it is an issue because the transaction starts to become more of a land loan and not a residential home loan. The other problem can be finding comparable sales for the appraisal.
Yes, homes that are on a well water system are eligible for the USDA loan. The water is required to be tested to ensure its safety.
In Nebraska and across the country, many families live and work on farms. The USDA home loan is designed for residential property and not working farms. The are other programs under the USDA umbrella for farming families, but the single-family program does not allow it.
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.