How USDA Loans Make Homeownership More Attainable
Imagine waking up to the sound of birds chirping, surrounded by lush greenery and the peacefulness of rural Hawaii.
Sounds like a dream, right?
With USDA loans in Hawaii, that dream could be closer than you think.
These loans offer a unique opportunity to purchase a home in eligible rural areas with no down payment required!
Here’s what you need to know.
What are USDA loans?
USDA loans are a type of government-backed mortgage offered by the United States Department of Agriculture (USDA). They are designed to help low- and moderate-income individuals and families purchase homes in rural areas.
USDA Loans Benefits
Zero Down Payment
This is the biggest advantage of USDA loans.
With no down payment required, you can use your savings for other costs associated with homeownership, such as closing costs, moving expenses, and furnishings.
Low-Interest Rates
USDA loans typically offer lower interest rates than conventional mortgages. This can save you thousands of dollars in interest over the life of your loan.
Flexible Eligibility Requirements
USDA loans have more flexible eligibility requirements than other types of mortgages.
For example, you don’t need a perfect credit score to qualify, and you can have a lower income than what is typically required for a conventional mortgage.
No Monthly Mortgage Insurance
Unlike some other types of mortgages, USDA loans do not require monthly mortgage insurance. This can save you even more money each month.
Rural Living
USDA loans are specifically for properties located in eligible rural areas, offering a chance to experience a different side of island life.
Is a USDA loan right for you?
To qualify for a USDA loan in Hawaii, you’ll need to meet specific criteria:
- You must be a US citizen, permanent resident, or have eligible non-citizen status.
- The home you want to buy must be located in a designated rural area in Hawaii.
- There are income limits based on household size and location to ensure these loans support those who need them most.
- While USDA loans are more forgiving than some, you’ll still need to demonstrate a responsible credit history.
- The house you buy must be your (and your family’s) primary residence.
How to Apply for a USDA Loan
If you think you may be eligible for a USDA loan, the first step is to find a qualified lender.
Hawai’i Mortgage Group is a trusted lender specializing in USDA loans and other mortgage options in Hawaii.
We can help you with the application process, ensuring you get the best possible loan terms.
Once a loan preference has been identified, you must submit a loan application. The lender will ask for information about your income, credit history, and the property you want to purchase.
Once your application is approved, you’ll need to close on your loan. This typically takes about 30 to 45 days.
Ready to Explore Your Rural Homeownership Options?
If you would like to learn more about USDA loans or apply for a loan, contact us today!
We’re here to help you make your dream of owning a home in Hawaii a reality.
Disclaimer: While we strive to provide accurate and up-to-date information about the Hawaii mortgage market, regulations and rates can change. This blog is not a substitute for personalized advice from one of our Hawai’i Mortgage Group professionals.
Photo by Jess Loiterton
