What is a USDA Home Loan?

If you fall within certain income guidelines, Traditions Mortgage can offer a United States Department of Agriculture (USDA) mortgage, also known as a Rural Housing Services (RHS) mortgage, with up to 100% financing.

Traditions Mortgage is an approved lender through the U.S. Department of Agriculture for USDA loans. These loans are designed to offer more opportunities to residents of rural areas with low to moderate-income levels. The Rural Housing Service administers these types of loans.

Interested in learning more about USDA loans? Read on to discover more about eligibility and the advantages of this program.

How Do USDA Mortgages Work?

Rural America plays an integral role in our country’s success. Agriculture is an important part of the American economy, and the people in rural areas help to keep the American dream alive. The USDA/RHS program encourages people to stay in these communities by providing financing opportunities in approved geographical areas.

USDA loans give low-income rural families a government subsidy that helps to reduce the down payment on the property. Household income must meet certain guidelines.

Who Qualifies for USDA Loans in Central Pennsylvania?

First, you will need to check if your address meets the government eligibility requirements. To apply for the loan, the applicant also must:

  • Meet income eligibility
  • Agree to use the property as their primary residence
  • Be a U.S. Citizen, a U.S. non-citizen national, or a Qualified Alien
  • Be legally aware of the impact of the loan obligation
  • Not be suspended or debarred from participation in federal programs
  • Demonstrate the ability to meet credit obligations in a responsible manner
  • Purchase a property that meets all of the program criteria
What are the Benefits of USDA Loans in PA?

You may wonder why a USDA loan could be the right choice for rural residents of Central Pennsylvania. While you may qualify for other loan options, here are just a few advantages of securing a USDA mortgage:

  • Closing costs and reasonable expenses associated with the purchase may be included in the loan.
  • You can use the funds from your loan to establish an escrow account that pays for flood or hazard insurance, providing needed protection for your home and crops.
  • You can employ the funds to remodel sections of the dwelling to assist a member of your family with a physical disability.
  • For more eligible uses of these funds, click here.

USDA loans deliver the flexibility you may need when comparing to other mortgage loan options. They are worth consideration if you meet the requirements.

Traditions Mortgage Wants to Be Your USDA Lender in York, Hanover, Camp Hill, and Lancaster PA

Traditions Bank was founded in 2002 with you in mind. We are a community-focused bank that loves forming connections with our customers and seeing how we can help them achieve their financial goals, such as home ownership. When you put your trust in us for a mortgage or a personal loan, we’ll work hard to show you just how much we appreciate your business.

Together, our senior management team boasts more than 200 years of experience. That has helped us build a bank that offers the knowledge you need and the outstanding attention to detail you desire.

When you’re ready to buy a home, look to Traditions Mortgage first. One of our experienced Mortgage Partners would appreciate the opportunity to help you secure a USDA mortgage.

Get in touch with Traditions Mortgage today to discuss our USDA loan rates in one of our York, Hanover or Camp Hill locations. Stop by to ask questions, or to begin your online application today!

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