Happy Friday everyone!
I’m excited to be nearly finished with a busy week, and ready for a weekend full of sports with each of my kids playing on Saturday and my own soccer game on Sunday. I’ll be all over Camden and Glynn counties this weekend, even heading down to Jacksonville more than once I’m sure.
As I thought about my travel plans for the weekend, I wanted to highlight something about Camden county, as well as some of our other counties in the southeast GA/northeast FL region: USDA rural designation. Now many of you may not have even heard of USDA loans before so before I speak about rural designation let’s review what a USDA loan is.
We at Fairway offer great loan programs that require zero down payment: VA loans and USDA loans. The US Department of Agriculture offers USDA loans to borrowers at zero down payment if they meet USDA criteria. First, borrowers must meet USDA credit and income requirements. You must have a minimum credit score of 620. Additionally, your household income cannot exceed 115% of the the area’s median income (which for Camden county amounts to $74,750 for a family of four).
Next, the home you are purchasing must be your primary home, not an investment property. A trade off for this is that if your prospective house has sufficient value, then you can actually roll your closing costs into the mortgage itself! This is the only loan program that offers this benefit, which, along with 0% down, can be very helpful for a lot of families without saved cash.
Another perk of the USDA loan is that while you have to pay mortgage insurance for not putting money down, this program has the lowest insurance rate of all programs, keeping your monthly payments low.
Sounds like a great program right? But what does this have to do with Camden? A key criteria for a USDA loan is that the borrower must be buying a home that qualifies for USDA; specifically one in a designated “rural” area.
Here’s the kicker that many people living in this area don’t know: the entirety of CAMDEN county is designated by the USDA as a rural area! In fact, most people don’t realize that over 90% of the US is classified as rural by the USDA, even though you may not be surrounded by farms and cattle!
In summary, If you meet the requirements, a USDA loan may be the perfect option for you! You won’t have to make a down payment. The US government will back your loan with a low mortgage insurance rate. It works for single family homes, new constructions, townhouses and most condos. All in All, it’s a great product if you have to meet very specific requirements, which many of my clients do.
Call me today and let’s talk about the BEST loan program to get you into your dream home, whether it’s USDA, VA or a variety of other programs that we offer at Fairway!