http://www.trulia.com/voices/Financing/What_are_USDA_home_loans_and_the_pros_and_cons_of_-120533I live in North Carolina and I found a home that I love. It's in a rural area, so no city taxes. I saw that the area had USDA home loans available. We are working with a lender now, but they don't do USDA loans.en-ushttp://www.trulia.com/voices/profile/Real_Estate_Pro-Greensboro_NC-272684/http://www.trulia.com/voices/profile/Real_Estate_Pro-Greensboro_NC-272684/Hello Tynettam, USDA loans are worth checking into with rural properties! The downside may be that it generally takes about 45+ plus days to close? You may run into a problem if looking at bank owned foreclosure or short sale properties. The majority of banks may request or require a 30-day closing date. Check around and see if you may get a better closing time frame.Wed, 06 May 2009 11:54:57 -0700http://www.trulia.com/voices/profile/Real_Estate_Pro-Clayton_NC-118839/http://www.trulia.com/voices/profile/Real_Estate_Pro-Clayton_NC-118839/Tynettam Definitely talk to a lender who does USDA loans, I have a client going the USDA route because he is getting a better interest rate and other loan terms with USDA. Everybody's situation is different, but you don't want to miss out on a better loan just b/c your lender doesn't do USDA loans. There are income and location restrictions, you can check http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do for eligibility. DanielWed, 06 May 2009 09:16:05 -0700http://www.trulia.com/voices/profile/Real_Estate_Pro-Asheville_NC-250494/http://www.trulia.com/voices/profile/Real_Estate_Pro-Asheville_NC-250494/By the way, that 2% fee is added onto the loan amount and does not have to come out of pocket. Just one more pro for the program....Wed, 06 May 2009 09:15:13 -0700http://www.trulia.com/voices/profile/Real_Estate_Pro-Asheville_NC-250494/http://www.trulia.com/voices/profile/Real_Estate_Pro-Asheville_NC-250494/It is hard to describe any of the cons to a USDA rural loan when the Pros are so many and so strong. As far as the Pros go: First off, you have 100% financing. Second, there is no monthly mortgage insurance. Third, the rates are ridiculously low. As far as the cons: * income limitations depending on area * Up front fee of 2% (FHA is 1.75% with MI so this is not much of a con) * Properties must be specific to rural areas * Very stringent debt-to-income ratios Of course, those are more specific to the loan and property itself, not the borrower. If you are buying a home that qualifies for USDA, you should take it. I can do a USDA loan qualfiication for you so if you need any assistance, please don't hesitate to call me. Luke Allison Bank of America Home Loans 828-777-8828 luke.allison@bankofamerica.comWed, 06 May 2009 09:14:12 -0700http://www.trulia.com/voices/profile/Real_Estate_Pro-Guilford_County_NC-196782/http://www.trulia.com/voices/profile/Real_Estate_Pro-Guilford_County_NC-196782/USDA, or United States Department of Agriculture, does loans for homes in rural areas. They will do 100% loans and will make loans for most home types. One exception is manufactured homes. They do manufactured home loans only if the home is brand new/new construction. An agent or mortgage professional that has experience with USDA loans can tell you quickly if a particular property will qualify based on its location. Like most loans, there is alot more than will fit in this area, but if you would like to ask me more questions, or would like to know of a lender who handles USDA loans, give me a call. Len@LenMontgomery.com 336-812-8128Wed, 06 May 2009 08:55:46 -0700