USDA Loans: They’re Not Just for Houses in the Boondocks

Have you heard of USDA loans?

If you’re a low-to-moderate-income homebuyer who doesn’t have a lot of money for a down payment and who needs mild credit requirements, you (or your lender) are probably focused on FHA loans. However, if you haven’t taken a look at USDA loans, you may be missing out on an incredible opportunity.

But if you haven’t taken a look at USDA loans, you may be missing out on an incredible opportunity.

In Real Estate the Rural Word is a Broader Term

In the world of real estate, the rural word is a broader term. You might be thinking, “But USDA loans are only for homes out in the sticks,” and that’s understandable. The loans were indeed designed to help buyers in rural areas. Yet, “rural” is a broader term than you may realize.

So, how can you learn more about it?

On the USDA website, you can enter an address in the search bar and check if it’s eligible, or you can drop a pin in a location to find out whether USDA financing is available in the area. Consider these interesting results: Frisco, TX, currently the fastest-growing city in the nation, is not eligible for a USDA loan, but Prosper, just to the north and being called “The next Frisco,” is eligible. The popular Valencia, CA, north of Los Angeles is not eligible, but areas of Santa Clarita, the city in which Valencia is located, are eligible. There’s no harm in looking, and you might find a real gem in an up-and-coming area.