USDA Home Loans in Tennessee
If you’re looking for a great deal on a home loan and are thinking about living in a more rural area, Tennessee USDA loans might be a perfect fit. USDA home loan popularity has soared in recent years as thousands of Tennesseans have begun to utilize this program to save literally thousands of dollars on expensive home loans. USDA home loans offer tons of benefits to Tennessee residents who are looking to move towards a more rural area of the great state of Tennessee. And the best part of this program is that it is only eligible for middle to low income families struggling to afford costly home loans. If you live in Tennessee and are struggling to come up with the money to purchase a home, you may want to consider the benefits this excellent home loan program has to offer.
Tennessee USDA Home Loan Benefits
Because USDA home loans are specifically designed to help low to middle income families afford quality housing, it comes with a number of benefits you won’t find in a traditional mortgage program. First of all, USDA home loans almost always come with a lower monthly mortgage payments than traditional home loans. This is mainly because USDA home loans come with a lower monthly mortgage insurance rate than conventional home loans.
Secondly, the USDA home loan program is the only mortgage program in the country, besides VA home loans, that require no down payment. Instead of the standard 10-20% down payment needed for most conventional home loans, USDA borrowers can purchase and move into the home of their dreams with hardly any money upfront. USDA home loans generally come with lower interest rates as well, 100% financing, low PMI insurance, and come with very low 30 year fixed rates. All loans are backed by the Department of Agriculture which makes them more attractive to potential lenders.
USDA home loans in Tennessee generally have more eligibility guidelines than most conventional loan programs due to all the benefit’s the program offers. Also, because this program is only eligible for low to middle income families, there are various maximum income limits designated for each county. Income limits can vary from county to county but are generally around $73,600 for a 1-4 person family, and $97,150 for a family of more than 4 people. However, if your total household yearly income is more than this maximum income limit, there are a number of deductions and allowances available that can get you in the right price range.
Other Eligibility Guidelines
To be eligible for a USDA home loan the property in question must be located within a USDA designed rural area. However, the USDA’s definition of a rural area does not only include country and farm lands, but could be any area of Tennessee with less than 20,000 residents. This means that many small suburban communities may also qualify. USDA home loans are not available for mobile homes, and can’t be used as an investment property. USDA home loans require a slightly above average credit score and you can still qualify even if you have a past and discharged bankruptcy.