100% USDA Loan in Montoursville PA
There is some goods news for home buyers in Montoursville, Pennsylvania.
Montoursville is now eligible for the USDA Mortgage Program
Previously the USDA had the town of Montoursville included as one of the ineligible areas of Lycoming County. Montoursvile was included with in the Williamsport metro area.
As you may know, the USDA Mortgage Program, also known as the USDA Rural Development loan, is intended for eligible home buyers in areas designated as non-metro. Small to medium sized Pennsylvania cities such as Williamsport are often ruled as ineligible for this rural loan program. Often the USDA would include towns that bordered a metro area as ineligible too. Previous USDA eligibility maps had Montoursville lumped in with the Williamsport metro area.
Montoursville PA is now eligible for USDA Loans… what happened?
No, Montoursville did not experience a drop in population. The USDA simply re-evaluated their maps and decided to loosen up their geographic requirements. As a result, Montoursville is one of the areas that is now included as a USDA eligible area.
Benefits of the Montoursville USDA Loan Program
No Down Payment Needed
Closing costs can be paid by the seller (up to 6% of the sales price)
Closing costs can also be financed into the loan amount (if the appraisal supports the needed loan amount)
Interest rates are 30 year fixed rates; no adjustable rates; no prepayment penalties
What other areas of Lycoming County are eligible for a USDA Loan?
Almost all of Lycoming County, Pennsylvania is eligible for the USDA Mortgage Program. The only area that the U.S. Census map have zoned as ineligible is the immediate Williamsport and South Williampsort city limits. More information about other areas of Lycoming County that are eligible for a 100% USDA Loan can be found here.
As with all USDA loans, there are maximum household income limits to use this program. These income limits are set by the USDA for each County in Pennsylvania. If your household income is close but exceeds the figures listed here, there are some deductions that can be made for medical and/or childcare expenses that may get your income under the limit.
USDA only offers their program with 30 year fixed rates so you never have to worry about your interest rate changing. We find that USDA interest rates are comparable to the interest rates we see for other government backed mortgage programs such as FHA and VA. Like all mortgage rates, available USDAinterest rates move up and down with the daily markets. Rates can be locked in at time of application. Below we have included an overview of what type of terms are possible as on 5/03/19.