The Real Deal Miami

Home buyers turn to USDA loans

December 16, 2008 12:26PM

As loan standards tighten, buyers in non-urban areas are turning
increasingly to a home loan program offered by the U.S. Department of
Agriculture. The program, which charges a 2 percent fee, allows buyers
to purchase homes with little or no money down. The volume of these
loans has nearly doubled recently as other loans with low requirements
have become unavailable. To be eligible for a USDA loan, a borrower’s
income cannot exceed 115 percent of the median income for the county
and the borrower must purchase a home in an area with low population
density.