USDA Home Loan
Opening Doors to Homeownership with 1st Colonial Community Bank
At 1st Colonial Community Bank, we're more than just a financial institution. We're your neighbors, your friends, and your partners in making dreams come true. Our USDA Home Loan is tailored to empower those with limited income or savings to step into homeownership without the burden of a large down payment. Our branches and our experienced lenders are right in your Southern New Jersey and Southeastern, Pennsylvania neighborhood, ready to make homeownership not just a dream, but your reality. No matter your budget, we're here to make home buying achievable and affordable.
Start Your Application
Contact Our Lenders
The Power of Possibility: USDA Home Loan Benefits & Eligibility
A USDA Home Loan isn't just a mortgage; it's a stepping stone to a better future. It's an opportunity to create a safe and comfortable space for you and your family. At 1st Colonial Community Bank, we understand that the journey to homeownership can be daunting, especially for first-time buyers.
Navigating the qualifications for a USDA Home Loan can seem complex, but we're here to simplify it for you. Here's a more detailed look at what it takes to qualify:
- Citizenship or Residency Status : To qualify for a USDA Home Loan, you must be a U.S. citizen or hold permanent residency status. This is a fundamental requirement set by the USDA.
- Property: The property must be located in an Eligible Rural or Suburban area designated by the USDA. Check with your lender for specific areas in your County or State.
- Dependable Income : A steady, reliable source of income is crucial. This reassures lenders that you have the means to repay the loan over time. The USDA will look at your income history to ensure it's stable and dependable.
- Credit History and Score : Your credit history should demonstrate a consistent ability to repay debts. This doesn't mean you need a perfect credit score, but a score of at least 640 is required for streamlined processing. If you don't have a credit history, don't worry. The USDA allows for evaluations through alternative criteria, such as your payment history for rent, utilities, and insurance.
- Income Limits : The USDA sets income limits to ensure these loans are helping those who need them most. Your household income cannot exceed 115% of the median income in the county where your new house is located. These limits vary by location and household size, so it's important to check with one of our Lenders or the USDA's income limit map and table for the most accurate information.
- Debt-to-Income Ratios : The USDA also sets guidelines for how much of your income can go towards your mortgage and debt payments. Your monthly payment on the loan — including principal, interest, insurance, and taxes — must be 29% or less of your monthly income. Additionally, your other monthly debt payments cannot exceed 41% of your income. These ratios ensure that the loan remains affordable for you.
Start Your Application
Contact Our Lenders
Take the First Step Towards Homeownership Today
Ready to unlock your dream home? Apply for a USDA Home Loan online today or get in touch with us to schedule a meeting with one of our seasoned lenders at a time and location that is convenient for you. With locations in Collingswood, Westville, Mount Laurel, and Limerick, we offer easy and convenient access for the homebuyers of Southern New Jersey and Southeastern Pennsylvania. At 1st Colonial Community Bank, we're more than just a bank—we're your neighbors, your friends, and your partners in making dreams come true.
Frequently Asked Questions About USDA Home Loans
What is a USDA Home Loan?
A USDA Home Loan is a zero down payment mortgage for eligible properties located in rural and suburban areas. It is issued through the United States Department of Agriculture.
Who is eligible for a USDA Home Loan?
Eligibility is based on income and varies by county. Your household income cannot exceed 115% of the median income in the county where your new house is located.
What is the interest rate on a USDA Home Loan?
The interest rate for a USDA Home Loan is typically lower than traditional mortgage rates because the loan is guaranteed by the USDA. To find out the rate you qualify for contact one of our lenders.
What is the upfront fee for a USDA Home Loan?
There is an upfront fee of 1% of the loan balance, which is less than the typical down payment required for traditional mortgages.
Start Your Application
Contact Our Lenders