USDA Loans

USDA Loans in Mill Hill, CT

The USDA home loan program is one of the best mortgage programs available. Also known as rural development loans, you do not actually need to buy a home in a rural area to qualify.

USDA home loans in Mill Hill, CT are government-backed loans that allow you to buy a home with no money down. Mill Hill, CT Home buyers can even finance closing costs into the loan or get seller assistance, potentially enjoying a no money down mortgage with 100% financing.

The Mill Hill, CT USDA program has been around since 1991. It was designed to boost homeownership rates in rural areas, but it is not just rural areas that are covered by this flexible loan program.

Benefits of a USDA Home Loan Mill Hill, CT

Benefits of a USDA Mortgage in Mill Hill, CT

The USDA rural home loan program offers several advantages:

  • 100% financing possible with no down payment necessary. The VA mortgage is the only other loan program with this benefit.
  • You can finance closing costs.
  • Looser credit requirements than other programs.
  • You can qualify with limited credit history, or even foreclosure or bankruptcy on your credit history.
  • USDA rural loans are designed for lower-income buyers.
  • Interest rates are very competitive.
USDA Home Loans Mill Hill, CT

Drawbacks to USDA Loans in Mill Hill, CT

Despite these benefits, there are some drawbacks to keep in mind. The USDA rural mortgage program in Mill Hill, CT has strict income requirements based on median income in the area. If your income is even a bit too high, you will not qualify. You must also buy a home in a HUD-designated rural area which may be rural, the suburbs, or an area in need of revitalization.

USDA Direct Loan vs USDA Guaranteed Loan

There are two types of USDA loans in Mill Hill, CT to choose from – direct loan and guaranteed loan. A USDA direct loan is made by the USDA to low income borrowers with a household income below 80% of the median income in their county. A USDA guaranteed loan is made by the bank. USDA guaranteed loans are easier to qualify in terms of income standards.

Rural Development Loans Mill Hill, CT

Requirements for a USDA Home Loan in Mill Hill, CT

You will need to meet these requirements to be eligible for a Mill Hill, CT rural housing loan:

  • Home must be in a HUD-designated rural area.
  • You must use the home as your primary residence.
  • Your monthly housing costs cannot be more than 29% of your pre-tax monthly income.
  • Your monthly debt and housing payments cannot exceed 41% of your pre-tax income.
  • You must have a credit score of at least 640.
  • You must meet income guidelines based on your family size, state and county.
Types of USDA Home Loans Mill Hill, CT

To See If You Qualify, Call Summit Funding Today!