You Want Rural Living

Rural house image

button-save-moneyIf you’re planning to live in a rural area or a small town in Colorado—20,000 or fewer residents—we can typically finance your home with an extraordinary USDA (U.S. Department of Agriculture) mortgage.

Advantages of a USDA loan:

  • Zero down payment required.
  • Up to 6% seller concession. The seller of the property can give back up to 6% of the purchase price of the property to the buyer.  You, the buyer, may use this concession to pay for your closing costs, which means you can buy a home and not have come up with any money of your own. This can equate to no down payment and no closing costs.
  • Low government interest rates.
  • More flexible loan-qualifying requirements for FICO credit scores of 550 or higher, higher debt-to-income ratios, and so on.
  • Low annual mortgage insurance. 0.5% of monthly mortgage balance.

Between 85 – 90% of Colorado is classified as rural or small town and eligible for USDA loans. If you choose a home not in the vicinity of Denver, Colorado Springs, Pueblo, Fort Collins, Greeley, or Grand Junction, you may be eligible for a USDA loan.

There are income limits for a USDA loan, but they are very generous. Income limits are determined by the county of the home and with consideration for the number of persons in the household. For 2015, annual income limits range from $77,900 to $94,600 for one- to four-person households, and from $102,850 to $124,850 for households of five or more—again, depending upon in which county your new home is located.

For purchases that do not meet USDA area and or income requirements, there are still other mortgage types available to you, including FHA, VA, conventional, and jumbo loans (loans over $424,350).

Check with Command Home Mortgage to see if your purchase area and income meet the USDA requirements.