Due to the adverse economic conditions many Americans are finding it difficult to own a home of their own. Similar is the situation with people living in North Dakota. However there is good news for people living in counties like Eddy, Billings, Grant, Bowman, etc since they have access to the most affordable home loan program with which they can fulfil their dreams of being a home owner.
United States Department of Agriculture (USDA) along with the U.S government has come up with an excellent loan program known as USDA home loans which is designed to support people who don’t earn enough to own a home of their own. Commonly known as Rural Development loans, USDA requires you to buy a property in an USDA designated rural area. But don’t get deceived by the word ‘rural’. You can buy a property in a location which has population less than 20,000 since these are all USDA approved areas.
Income and Loam Limits for USDA Home Loan North Dakota
USDA loans are not for people who can easily afford to own a home. It is specifically designed for people belonging to the moderate to low income groups. In order to identify the eligible families, USDA has set up income limits and families qualifying to these limits can only get USDA loans. For most of the counties in North Dakota, the income limit for households with 1 to 4 persons is $78,200 and that for households with 5 to 8 persons is $103,200.
At present USDA offers two types of home loans which are:
- Guaranteed home loans and
- Direct Home loans
To get guaranteed home loans our income has to be 115% of the AMI (area median income as set by USDA). Direct home loans are available for people who have income which is 50-80% (low income) for the AMI. People qualifying these income limits can only apply for USDA home loans.
Though USDA does not define any maximum loan limit, the maximum amount that a borrower can receive is determined by evaluating the maximum income limit and debt-to-income ratio of the borrower. The maximum guaranteed loan limit for most of the counties is $272,000 for households having 1 to 4 persons and $357,000 for households having 5 to 8 persons. The direct loans have a pre-defined maximum loan amount unlike the guaranteed loans.
Counties that no longer qualify for USDA Loans
USDA has declared a few counties to be ineligible for USDA loans owning to the proper growth rate and improve in the economic conditions. So people living in Cass, Ward, Burleigh, Morton and Grand Forks might not be able to get financing from USDA for buying a home. But there’s nothing to get disheartened, since a few areas within these counties still are eligible for the special mortgage programs.
Before you lose the chance of availing the USDA home loans completely, check whether you are eligible for USDA and apply at once without wasting any more time.
For people who are still thinking whether they should go ahead with home buying or not, here are some advantage that you will get by applying for USDA loans:
- 100% financing with zero down payments
- You are eligible to get USDA loans if you want to relocate
- Flexible credit guidelines
- 30 year fixed rate loans
- Fixed interest rates for the entire loan tenure
- Low mortgage insurance payments
No other conventional loan programs will have so many advantages together. So if you wish to own a home of your own, get in touch with us. Call us or fill out the online enquiry form today!