100% Financing USDA Loan in Gettysburg, Pennsylvania
Gettysburg, Pennsylvania is eligible for the No Down Payment USDA Mortgage Program.
Thinking about buying a home in Gettysburg? Take a look at the USDA Mortgage Program.
Also known as Rural Development Loans, the USDA Mortgage Program allows home buyers to purchase a home with no down payment. Most of the time, these loans can also be structured with no money needed at closing. USDA Loans have restrictions for property location and they are only eligible in areas that the USDA has zoned as rural. Surprisingly, the USDA loan program is also available in some of the larger Pennsylvania such as Gettysburg.
Gettysburg is zoned eligible for the USDA Rural Development Loan Program.
It may not feel like a rural location when you are walking along Lincoln Square in downtown Gettysburg but the USDA census maps often includes small cities and large towns. You could buy a home in the middle of downtown Gettysburg and still qualify for the USDA Rural Development Loan program. All of Adams County, Pennsylvania is also eligible for the USDA Loan Program, to find other eligible towns visit the Adams County USDA page.
How to Buy a USDA Home with No Money Due at Closing
The USDA Loan program allows for 100% Financing, so there is no down payment required. Even better, you can also finance in any closing costs if the appraised value allows.
For example, if you have sales price of 150K and let’s say closing costs are 7K, you can finance 157K and roll the closing costs into the loan. The key to making this work is that the home would need to appraise for at least 157K. Another option to have closing costs covered is to negotiate for the seller to pay them. USDA loans allow the seller to pay up to 6% of the sales price. In most cases, this results in no money needed at closing from the buyer.
Benefits of the USDA Mortgage Program
USDA Mortgages do not require a Down Payment
USDA Mortgages allow the Seller to pay up to 6% of the sales price towards the Buyer’s closing costs
USDA Mortgages allow the closing costs to be financed into the loan amount, if the appraised value supports the needed loan amount
USDA Mortgages are only offered as 30 year fixed mortgages
USDA Mortgages can be paid ahead of schedule or can be paid off at any time with no prepayment penalties
USDA Mortgages are not only offered in rural areas
USDA Mortgages are also available in many large towns and suburbs of cities
Adams County USDA Household Income Limits
Deductions to reduce your USDA Household Income Calculation
$480 for each minor child living in the household
$480 for any student living in the household who is not on the mortgage application
$400 for each disabled household member who is not on the mortgage application
Documented Child Care Expenses for household members under the age of 13
Documented Medical/Disability Expenses for household members age 62 or older (this deduction is allowable if the expense exceeds 3% of the household income)