Buyers looking for a Colorado Springs real estate listing with a few extra acres may be interested in the USDA home loan program. Homes within the Colorado Springs city limits do not qualify for the USDA loan program, but any suburb with less than 10,000 residents is considered rural. If the population grows beyond what is considered rural, then the USDA loan will not be available.
Colorado Springs homes for sale in Peyton and Woodland Park qualify for this special financing from the USDA (United States Department of Agriculture).
Two types of USDA loans are available to purchase Colorado Springs homes. 1) USDA Guaranteed Rural Housing Loans and 2) USDA Direct Rural Housing Loans. Most of the applicants obtain USDA Guaranteed Rural Housing Loans.
Maximum income limits apply. For the guaranteed loan, it may not exceed 115 percent of the median income in the area. For Colorado Springs, income may exceed $80,000.
The USDA Direct Rural Housing Loan income limits are different. They are only available to very low income families and low income families as is determined by percentages of the median household income and number of dependents. Maximum income limits are approximately $24,800 for one-person households, $57,000 for two-person households, and $63,450 for three-persons, and $69,900 for four-person households. Income may not exceed 50 to 80 percent of the area’s median income.
There are distinct requirements to qualify. In Colorado, monthly housing costs (mortgage principal and interest, property taxes, and insurance) may not exceed 29 percent of gross monthly income. Total debt may not exceed 41 percent. Most lenders require at least 620 FICO credit scores. USDA Guaranteed Rural Housing Loans allow higher income limits and 100 percent financing for home purchases. All USDA Guaranteed Loans are 30-year fixed products.
How big of a house can be purchased? There is no maximum USDA loan amount. However, the debt-to-income ratios dictate maximum allowable home prices. The maximum loan amount is 102 percent of appraised value of the home as USDA adds on a 2 percent fee.
No down payment is required. In addition, closing costs may be wrapped into the loan amount.
All eligible real estate must be owner occupied. Qualifying Colorado Springs real estate includes condos, planned-unit developments, manufactured homes, and single-family homes. Mobile homes are excluded from the USDA loan program.
Contact Ann Heiring of RE/MAX Advantage, Inc. at (719) 440-1010 or Toll Free at (800) 246-8978 to learn how our acclaimed city can work hand in glove to help you achieve your lifetime real estate goals.