Buy a Home in Kutztown, Pennsylvania with No Down Payment
Kutztown is eligible for 100% Financing with the USDA Loan Program.
Known by the following names: USDA Loan; USDA Mortgage; Rural Development Loan; USDA Guaranteed Mortgage. No matter what name you call it, a USDA Loan can help you buy a home without needing any money at closing. The Pennsylvania USDA Loan Program is only available in certain geographic areas and is only eligible in areas that the census maps designate as rural. Often this designation includes towns we wouldn’t necessarily consider rural, such as Kutztown.
Kutztown and the surrounding area is zoned eligible for the USDA Mortgage Program.
It may not feel completely rural when you are driving on Main Street in downtown Kutztown but the USDA census maps have included the entire borough in their Eligible Area maps. Outside of the immediate Reading area, the rest of Berks County is zoned eligible too. More information about other areas in Berks County can be found on the Berks County USDA page.
Berks 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)
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 with no balloon payments or negative amortization
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