When you’re in the market for a new home, you have a lot of options available to you. The KC Metro Area is home to a wide range of neighborhoods, communities, and towns, and when you’re looking for the perfect home for your family, your job, and your lifestyle, you obviously want to look at options that offer the best in Kansas City. For some, that means the hustle and bustle of living right near downtown, while for others the convenience and wide-open spaces of the suburbs are more appropriate. If you’re looking for something a little more out-of-the-way, USDA loans in Kansas City may be an option for you and your family.
What are USDA loans? Well, for starters, they’re available to people who are buying homes in rural areas. But if you work in Kansas City, don’t give up hope just yet. The USDA’s definition of a “rural area” can be very broad, and often times small towns and even suburbs of major cities qualify, so if you have any doubt, it’s always worth asking your lending agent if USDA loans in Kansas City are right for you.
The benefit of getting a USDA home mortgage is that they are guaranteed through the federal government’s USDA Rural Development Guaranteed Housing Loan Program, meaning that if the borrower defaults on the loan, the government will still cover a portion of the total amount. This makes USDA loans a “safer bet” for lenders, so they often qualify for lower rates. There are a few restrictions, besides the fact that your home needs to be in a USDA-designated “rural area.” USDA loans in Kansas City are only available for owner-occupied residences, and they’re only available to those who can demonstrate U.S. citizenship or permanent residence.
Aside from lower rates, what are some of the benefits that USDA loans in Kansas City offer potential home-buyers?
- They are available to first-time homebuyers, as well as previous homeowners.
- No military service requirement as with VA loans.
- No minimum credit score is required by the USDA.
- The USDA home loan program doesn’t limit the amount that you can borrow.
- USDA home loan mortgages do not feature PMI or private mortgage insurance.
- 30-year and 15-year fixed rate mortgages are available.
- You can still get a USDA loan if you are self-employed or even after a bankruptcy, as long as the bankruptcy has been discharged for at least three years.
One of the biggest benefits of USDA loans in Kansas City is that qualified borrowers can purchase homes with no down payment, making USDA loans one of the few zero-down loans on the market. So how do you know if a USDA home loan in Kansas City is right for you and your family? The easiest way is to contact First Fidelis today and let us help determine your eligibility and walk you through your options so that you and your family can move into the home of your dreams!