BuyersLocal Real Estate MarketSellersUncategorized April 3, 2023

You Don’t Need to Be Buying a Farm! USDA Loans Might Be a Great Option When Buying Your Next Home

If you’re thinking about buying a home, you want to explore every financing option available. And, depending on your situation, one of those financing options could be a USDA loan.

But there are a lot of myths and misconceptions about USDA loans—many of which prevent qualified home buyers from even exploring them as a way to finance their home purchase.

So what, exactly, are those myths—and, more importantly, what’s the truth?

A recent article from outlined common myths about USDA home loans, including:

In order to qualify for a USDA loan, you need to buy a farm. USDA loans come from the U.S. Department of Agriculture—and because of that, many people believe they’re only for potential homeowners looking to buy a farm. But that’s just not true! You can use USDA loans for a variety of property types—including houses, condominiums, and townhomes—as long as the property is in an area that’s classified as rural.

USDA loans are only for first-time home buyers. You can’t use a USDA loan to buy an investment property—and because of that, many people believe that USDA loans are strictly for first-time home buyers. But that’s not the case! If you’re a current homeowner that’s looking to buy a new home as a primary residence for yourself and your family, USDA loans are an option.

In order to qualify for a USDA loan, you need a down payment. Many people believe that, in order to get a home loan—including USDA loans—you need a down payment. But while setting money aside for a down payment is ideal and even required for some loans, with USDA loans it’s not always required; qualified applicants can get up to 100% financing—and can roll other costs (like closing costs and prepaid charges) right into their loan.

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