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USDA Loans for First Time Home Buyers

Happy young African American couple celebrate moving into their first homePurchasing your first home can be an exciting and, in some ways, overwhelming experience. 

With many mortgage options to consider, one of the most overwhelming aspects of home shopping for first time home buyers is often the process of understanding, evaluating, and selecting the best financing option.

For many first time home buyers in rural areas of New York, USDA home loans are an ideal financing option. 

Considering a USDA mortgage? We review some of the key reasons why this financing option is a great fit for people buying their first homes. 

Why USDA Mortgages are Great for First Time Home Buyers

USDA home loans are backed by the United States Department of Agriculture and they offer a variety of benefits to those who qualify. 

They are particularly beneficial for first time home buyers for a number of reasons, including: 

100% Financing

For those who meet the income eligibility requirements, USDA home loans offer 100% financing. This is beneficial for first time home buyers because it means that there is no need to save up for a large initial payment. 

Flexible Credit Qualification Standards

There is no one specific minimum credit score threshold that determines USDA home loan eligibility. This means that those with questionable credit or improving credit may still qualify – which is helpful for first time home buyers who are attempting to qualify for home financing for the very first time.

Competitive Interest Rates

Interest rates do vary based on the economic climate and per lending institution, but generally speaking USDA loans have competitive interest rates that are often lower than those associated with other types of home loans. This makes home purchases more affordable, which is especially beneficial for first time home buyers who are just starting out.

Low Mortgage Insurance

Another major benefit of USDA loans is that they offer low monthly mortgage insurance (MI). Because USDA mortgages have low monthly MI compared to other lending options, it’s a great financing option for many home buyers, including those purchasing their first homes. 

These are just a few of the various benefits that USDA home loans offer first time home buyers. You can learn more about the advantages of New York USDA mortgages here. 

I’m a First Time Home Buyer. Do I Qualify for a USDA Mortgage?

As mentioned previously, the USDA does have qualification requirements that must be met for those looking to finance a home purchase with a USDA loan. 

Wondering if you meet the qualification criteria? You can learn more about whether or not you qualify for a USDA home loan here.

Still not sure if you qualify? The mortgage team at Maple Tree Funding can help you understand your mortgage options, and will work with you to explore the various financing options you qualify for – including USDA – so you’re sure to choose the mortgage that works best for your specific scenario. 

Give us a call at 518-782-1202 or contact us online to get the conversation started! 

Does the Property I’m Interested in Purchasing Fall Within a USDA-eligible Region?

If you’re reviewing eligibility requirements for USDA home loans, you are probably aware that these mortgages are only available for homes in certain rural regions in New York State.

Many counties through New York have eligible areas. You can learn more about finding a USDA-eligible property here. 

Hoping to determine whether or not a specific property you’re interested in is located in a USDA-eligible region? You can find that information here. Just click on “Single Family Housing,” click “Accept,” and type in the address of the property you’re curious about.

I’m Interested in a USDA Home Loan to Finance My First Home Purchase. How Do I Apply?

Some first time home buyers are intimidated by the mortgage application process, but there’s really nothing to worry about! 

Check out this step by step guide to applying for a USDA loan for a closer look at what to expect during the application process.

Have questions along the way? Our team of mortgage professionals can help! Get in touch with us at 518-782-1202 or contact us online and we’ll get back to you with the guidance you’re looking for.

If You’re a First Time Home Buyer, A USDA Mortgage is Worth Considering!

When purchasing your first home in New York, it’s a good idea to explore all of the available mortgage options to find the one that works best for your financial situation. With a number of advantages that are specifically beneficial for first time home buyers, it’s a good idea to keep a USDA home loan among the options you are considering. 

No matter what type of mortgage you choose, the team at Maple Tree Funding is here to assist you throughout the mortgage process. We work hard to make home buying accessible to first time home buyers and we’re available every step of the way to answer your questions, provide guidance, and help you understand the ins and outs of the process of securing a mortgage to finance your first home purchase.

Ready to get started? We’re ready to partner with you! Give us a call at 518-782-1202 or kick off the mortgage pre-approval process here to take the first step towards owning your first home today!

Posted in Guide to USDA Home Loans on Wednesday, March 25, 2020 by Maple Tree Funding