USDA Loans: Not Just for Homes in the Boonies

 

Have you heard of USDA loans? If you're a low-to-moderate-income homebuyer who doesn't have a lot of money for a down payment and who needs lenient credit requirements, you (or your lender) are probably focused on FHA loans.

 

But if you haven't taken a look at USDA loans, you may be missing out on an incredible opportunity.

 

If you're saying to yourself, "but USDA loans are only for homes out in the sticks," that's understandable. It's true that the loans were designed to help buyers in rural areas. But "rural" is a broader term than you may realize.

 

On the USDA website, you can enter an address in the search bar and check if it's eligible, or you can drop a pin in a location to find out whether USDA financing is available in the area. Consider these interesting results: Barnstable, MA, the largest town on Cape Cod, is not eligible for a USDA loan, but all other towns in the county are eligible. The popular Plymouth, MA, located south of Boston, is not eligible, but many surrounding areas are eligible. There's no harm in looking, and you might find a real gem in an up-and-coming area.