USDA Loans: A 100% loan in Columbia MO

USDA loans have been around for quite some time. These loans are 100% loan-to-value, meaning almost no money down.  They also do not have PMI (private mortgage insurance) tacked on in the payment like most conventional and FHA loans. What are the details, and how do I qualify?

Most banks or lending institutions offer the USDA program--I can provide a list if you need some references.  This is a great loan program, but there are a few restrictions, most importantly:

• The home must be located in a "rural" area, outside of the city limits of Columbia.  Some areas of Columbia do qualify, even a few subdivisions so its always good to check to verify if the house is in a USDA area. Areas like Hallsville, Ashland, Sturgeon & Harrisburg all qualify for USDA.
• There are some income limits.  For example, a family of 1-4 people cannot exceed $74,050 of annual household income in Boone County. 
• It has to be used for your primary residence.
• You have to qualify for a loan with your bank or mortgage company.

If you are interested in getting more info on this loan, speak to your mortgage specialist, or give me a call/email and I can help you.  This really is a great product for those looking in a non-specific area and don't have a lot of money to put into a down payment. 

JK