The USDA loan, also known as the USDA Rural Housing Loan Program is a 30 year fixed rate mortgage that is created for low to moderate income home buyers.
The house must be located in an USDA eligible area of Ohio. Much like the USDA Loans in New Jersey, New York, Texas, and nationwide, the USDA mortgage loan does not require a down payment (100% financing plus the guarantee fee). An Ohio USDA Loan is a United States Department of Agriculture sponsored program that is backed by the Government and commonly referred to as Ohio Rural Development loans.
If you’re purchasing a home in a rural area in the state of Ohio with a population of less than 35,000, and looking for a home in a qualifying suburban town that is located outside of city limits, a Ohio USDA home loan may be a good fit for you!
An Ohio USDA Home Loan is a ‘Zero Money Down’ loan, which means, at the time of closing on your loan, you will not have any out of pocket costs. This is one of the many benefits of selecting a Ohio rural development loan.
The USDA home loan is a zero down mortgage program. Home buyers must meet the income limits for PA (see below). You can estimate the USDA loan amount and mortgage payment with the USDA calculator. The loan is “insured” by the United States Department of Agriculture.
What is a USDA Loan in Ohio?
USDA Home Loans are the only no money down option available to non-military homebuyers. Through Section 502 Guaranteed Rural Home Loans, buyers have access to low rates less stringent eligibility requirements, and 100% financing.
There are 2 Common Types of USDA Ohio Home Loans:
Ohio USDA Rural Development Guaranteed Loan most common type of USDA home loan. USDA will allow the seller to pay all closing costs toward the purchase of the home or, closing costs can be financed directly into the loan. This is a no money down home loan for buyers looking to purchase a home in eligible areas of Ohio, and insured/guaranteed by the government. Maximum loan limit is up to $417,000, and rates on a Ohio Rural Development loan are fixed and very competitive. Often, a Ohio USDA home loan program will allow the ability to finance home improvements into the loan. Maximum home improvements are limited to $5,000, and provides great benefit to Ohio home buyers.Ohio USDA Rural Development Direct Loanused to help low income individuals or households to purchase homes in Ohio rural areas, loan can be used to purchase or build a home, repair, renovate or relocate a home. Eligibility is based on low income buyers, which is defined as below 50% of the area median household income.This is all made possible because the loan is guaranteed by the United States Department of Agriculture. Regardless if you're in search of USDA Loans in Ohio or anywhere else, it's important to check eligibility first!
Why Were USDA Loans in Ohio Created?
The USDA developed the Section 502 Rural Home Loan to entice families to move from metropolitan areas and to build up rural housing communities. Residents of Ohio that meet maximum income limits, and have a property of interest that is located in an eligible rural area can quality for a Ohio USDA loan. Anyone who meets minimum credit guidelines (Min. 600 Credit Score) and local area income requirements can qualify for a Ohio USDA loan. In some cases, no credit score required. It is important to note that there are many eligible areas for the program. Approximately 97% of the United States land mass is eligible for this loan and many families we speak to are surprised that they already live in an eligible area. An opportunity with a USDA Loan on hand is perfect for your first time venture in real estate. We serve Ohio, Texas, New Jersey, New York and entire rest of the 97% eligible regions!Am I Eligible for USDA Loans in Ohio?
Yes!
Any individual or family who plans to occupy a home located in an eligible USDA loan area as their primary residence may qualify for the Section 502 Guaranteed Rural Home Loan. All applicant(s) for the USDA loan must provide sufficient income verification and a credit history that indicates an ability and willingness to meet repayment obligations.
The USDA loan income limits as of early 2019 have increased. The USDA does not set loan limits as with FHA loans, but bases the maximum loan amount on the borrower’s ability to qualify.
All areas in the state of Ohio that are eligible for a USDA home loan require income limits based on the property you are looking to purchase, and the number of people living in your home. As mentioned, there is no maximum loan limit with the USDA Guaranteed Loan. Furthermore, it is important to check your credit score, calculate your mortgage rates, and pre qualify for a USDA mortgage.
Who is USDA Eligible in Ohio?
You!
Any individual or family who plans to occupy a home located in an eligible USDA area as their primary residence may qualify for the Section 502 Guaranteed Rural Home Loan. All applicant(s) for the USDA home loan must provide sufficient income verification and a credit history that indicates an ability and willingness to meet repayment obligations.
USDA Interest Rates in Ohio
502 Rural Development Guaranteed Loans are backed by the United States Government. This is why lenders do not have to add major risk adjustments to their pricing like they do on conventional and FHA loan products.
This results in competitively low rates. Eligible borrowers find that rates are generally lower with the this program when compared to conventional and latter loan programs. Found out more about the USDA Loan Process
A pre-qualification for eligible areas like Ohio, provides an estimate of what you can afford based on the information you provide to your loan specialist. It gives you a starting point of what purchase price you can afford. Fast, Simple, and Free, you can be ready to make an offer on your home as early as today!
