What is a USDA Loan + Bulid A New Home In St Cloud With No Down Payment!

Build A New Home

One of the financing options available when you purchase a new home is a USDA loan. This is a loan offered by the government. The major benefit of a USDA loan is that you do not have to put down a down payment. So if you don’t have a lot of cash in savings to buy a new house, this may be your best option.

Getting a USDA loan is a little more difficult to get approved for compared to a FHA Loan or a conventional loan. First you have to make sure the home you want to buy qualifies for USDA loans. The good news is that some new communities are already preapproved for USDA loans so this makes the process a little easier.

That means you could build a brand new home with no money down. Building a new home gives you peace of mind since you should not have to replace anything for many years. Plus you get the added benefit of a more energy efficient home – so lower power bills! (You can also check the USDA website for properties in your area that qualify for USDA loans.)

In order to qualify for a USDA loan you have to fall under certain income levels based on your family size. Because of the stricter income guidelines, you will need to do a little more paper work to prove your income.

Unless you can put down 20% on a new home you will have to pay Property Mortgage Insurance (PMI). This will be part of your monthly payment. With a USDA loan the PMI is less than a FHA or conventional loan.

There are many great reasons to see if you qualify for a USDA loan. If you qualify the only money you should have to pay is the closing cost. But this could be something that the seller may pay for you.

Who may apply for the USDA Loan program?

Applicants must:

  • Meet income-eligibility
  • Agree to personally occupy the dwelling as their primary residence
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Have the legal capacity to incur the loan obligation
  • Have not been suspended or debarred from participation in federal programs
  • Demonstrate the willingness to meet credit obligations in a timely manner
  • Purchase a property that meets all program criteria

If you are interested in building a new home with a USDA loan, Villagio in St Cloud is the only USDA eligible community in St Cloud. You can also take advantage of other promotions being offered by the builder. Homes start around $190’s – Featuring 3 bedrooms, 2 bathrooms and a 2 car garage. You can get up to 6 bedrooms, 3 bathrooms and a 3 car garage. The builder is also offering $5,000 towards closing cost and $5,000 in upgrades! You can build a brand new home!

Contact Christie at Christie@DenikeRealty.com or 321-443-3159 for more information

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*Prices, financing, promotion, and offers subject to change without notice.