USDA Mortgage Loan Program Widens Footprint — Here Are 15 Cities You Can Get 100% Financing
A lot more Americans now have access to 100% mortgage financing thanks to a major expansion of home loans provided by the U.S. Department of Agriculture to low- and moderate-income households.
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Effective October 1, 2023, the USDA added 1,131 new areas to its USDA mortgage footprint for 2024 while removing only 36, according to the Homebuyer.com website. The expansion comes amid a tough environment for house hunters due to the combination of high home prices, rising mortgage rates and low inventory.
First-time home buyers can purchase USDA-eligible homes with 100% financing using the USDA Single-Family Guaranteed Loan Program. USDA loans, also known as Section 502 mortgages, let buyers purchase homes with no down payment, reduced mortgage insurance rates and mortgage rates that are 0.25% below conventional rates, Homebuyer.com noted.
On its website, the USDA said eligible applicants must meet the following criteria:
Income cannot exceed 115% of U.S. median household income
Agree to personally occupy the dwelling as your primary residence
Be a U.S. citizen, U.S. non-citizen national or qualified alien
You must also live in an eligible rural area because USDA mortgages are intended for modest homes in non-urban regions.
“Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas,” the USDA stated on its website.
An analysis by Homebuyer.com highlighted newly eligible USDA cities within commuting distance of major population centers ranging between 800,000 and 10 million residents. For its analysis, Homebuyer.com used data from the USDA, U.S. Census Bureau and Google Maps.
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If you’re looking to buy a home within about an hour’s drive of a major metro area, here are 15 newly eligible smaller cities where you can get 100% USDA mortgage financing:
Lake Los Angeles, California: The nearest big city is Los Angeles, 68.2 miles away
Mecca, California: Nearest big city is Riverside, 88.7 miles
Moapa Valley, Nevada: Nearest big city is Las Vegas, 60.1 miles
Phelan, California: Nearest big city is San Bernardino, 31.2 miles
Highland Oaks, Texas: Nearest big city is San Antonio, 25.8 miles
Rancho Murieta, California: Nearest big city is Sacramento, 25.5 miles
Wedgefield, Florida: Nearest big city is Orlando, 26.2 miles
Harrisburg, Ohio: Nearest big city is Columbus, 16.2 miles
Jacobson Estates, Texas: Nearest big city is Austin, 15.4 miles
Marana, Arizona: Nearest big city is Tucson, 9 miles
Farmersville, Texas: Nearest big city is Dallas, 43.6 miles
Lanare, California: Nearest big city is Fresno, 28.8 miles
Bedford, New York: Nearest big city is New York City, 47.5 miles
Springville, New York: Nearest big city is Buffalo, 34.5 miles
Frazier Park, California: Nearest big city is Santa Clarita, 43.4 miles
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This article originally appeared on GOBankingRates.com: USDA Mortgage Loan Program Widens Footprint — Here Are 15 Cities You Can Get 100% Financing