USDA Home Loans Rock The Triangle!

In the Triangle, we are lucky to have such a large area that qualifies for USDA financing on mortgage This Home Qualifies for USDA Financing!loans!  This program offers a 100% loan for homebuyers who qualify with properties located in the more "rural" parts of the area!

Does that mean it's just for a FARM?  Oh NO!  This is for your home, not for income producing farms.  The loans do have a guarantee fee of @ 3.5%.  This means that if you purchase a home for $100,000 (I only use this example since I can do this math in my head) then you will have an additional fee of $3500 added to your loan.  The total loan will be $103,500- which means that you will owe more on the home than you paid for it when you close.  Because of this, I think there are a few important things you should consider:

  • Are you working with an Agent to get a really good deal on the home?  This is not the time to be an amateur buyer!  It's time to pull the experts in to purchase a great home!  (If you are not hooked up with a great Realtor in the Triangle, let us know and we'll refer you!) Since you are going into the property owing more than you paid for it, you want to get a great deal!
  • Are you buying a "fixer upper" or a foreclosed property? There are programs designed for purchasing a previously foreclosed property that needs some repairs (Click here for details), but that's not what USDA is designed for.  This is JMHO, but if the property just needs some updating, that's one thing... but if the roof needs to be replaced this year, and the carpet is worn thin - I would not want a USDA loan on that home.  
  • You need to have DECENT credit, but we can do loans for folks with credit scores less than 620 - especially if there are off-setting factors, like you graduated from college, or have a decent 401K savings amount!  Again, just my $.02 worth - but if you are already on shaky ground... this might not be the time to go into a 100% mortgage!

The qualifying incomes vary per county, and the property eligibility varies by address, however we've put together some basic information on USDA loan in the Triangle (just click the links for each county):

This home qualifies for USDAWake County:  We have maps for Apex, Holly Springs and Wake Forest.  In general, all of Fuquay Varina, Wendell and Zebulon qualify for this financing.  The maximum income for 2 people in the household is $68,900.

Johnston County:  In general, all properties in Johnston County Qualify for USDA financing.  Click the link to get maximum income requirements.  For a USDA home loan, you need to have decent credit.  The minimum credit score is generally at 620, although exceptions are granted on a regular basis.

Durham County:  Probably has the least amount of real estate that qualifies for USDA Home Loans, however, there are some very desirable spots near Briar Creek and Northern Durham County that qualify.  The Maximum income limits in Durham County are lower than Wake and Johnston County (of course their FHA maximum loan limit is higher!)

Orange County:  I was surprised when I looked at the maps for Orange County!  Most of the county qualifies!  Okay - so downtown Carrboro doesn't qualify, and neither does Chapel Hill - but most of the rest of the county does!  Click on the link for a map and to see the maximum income limits.Great Home in Holly Springs!

As I write this, mortgage rates for this program are VERY reasonable.  A USDA (depending on credit scores and when you are closing) could easily have a rate of 4.75% to 5.0%!  So - if you purchased this house (which has almost 1820 square feet and has a garage!) in Holly Springs, for $192,000... your principal and interest payment could be $1036.61!  With TOTAL monthly payments under $1250 a month - you would probably SAVE money by purchasing this home!  The TAX Advantages are HUGE!

If you are considering a new home in the Triangle, and you think USDA might be a great program for you... call us.  Right now many lenders are saying they will only do them:

"Subject to Congressional Allocation of Funds"  The USDA program does not Currently have money...

We have several lenders who are not letting Congress get in the way of closing on these homes - so Call Steve and Eleanor Thorne, USDA Mortgage Loan Experts 919-649-5058  If you are looking for a home that's not mentioned in this post, click here for a list of counties that qualifies for USDA Home Loan financing in NC.

Comment balloon 15 commentsEleanor Thorne • January 26 2009 02:35PM


I have never had a client apply for a USDA loan but since Charlotte is not that different from your area I imagine we have areas that would qualify as well.  Thanks for the interesting info!

Posted by Diane Aurit, Lake Norman Real Estate (LKN Realty, LLC) over 10 years ago

Great post Eleanor. You always have the best explanations of this program.

Posted by Fred Chamberlin, Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant (Guild Mortgage Co - Oak Harbor WA) over 10 years ago

Terrific post, Eleanor.  So many people don't understand the USDA program and are of the belief that if it doesn't involved acreage and active farming then they can't apply.  But sometimes I think that while these programs are available, the powers that be don't really want the public to know about them, thus they save some money.

Posted by Carol Smith (Casmi Photography) over 10 years ago

Eleanor, I am a huge fan of the "farmers home loan". There was a time, about 14 years ago, when this was the loan of choice in my market area. Then the subprime 100% financing came along and I didn't see one of these loans in years. Now they are making a very strong and well deserved come back. Very good loan product.

And don't forget the buyer can put 6% in closing costs on top of the purchase price.

Posted by Bryant Tutas, Selling Florida one home at a time (Tutas Towne Realty, Inc and Garden Views Realty, LLC) over 10 years ago

Broker Bryant!  FORGOT that's what they use to be called!  Thanks!

Posted by Eleanor Thorne, Equity Resources 919-649-5058 (Equity Resources) over 10 years ago

It is a great loan for buyers that can qualify and it is in an area that is approved. I haven't used it much in the past but will be more aware of it in the future.

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) over 10 years ago


My first home purchase in the early 70's was through the Farmers Home Administration.  Broker Bryant and I are so much older than you and Steve; it's okay that we know what they used to be called, and you youngsters don't!  LOL

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 10 years ago

Boy, add first time homebuyers to this deal with the $7500 tax credit, and how can you NOT purchase!  There are many, many properties that qualify, particularly those in the first time buyer budget range.  GREAT INFORMATION!

Posted by Stanton Homes, Design/Build Custom Home Builder in North Carolina (Stanton Homes - New Home Builder) over 10 years ago

You do a great job of educating--so many people are not aware of the FHA loans and all the advantages of them.

Posted by Cynthia Tilghman, Realtor® Onslow County NC Home Specialist (Kingsbridge Realty, Inc) over 10 years ago

thanks Eleanor - you keep us up to date on info in our area and great ways for us to help our buyers.  I agree with Penny - 1st time home buyers - IT'S TIME TO BUY... NOW!!!

Posted by Lee & Pamela St. Peter, Making Connections to Success in Real Estate (Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522) over 10 years ago

thanks for this!  You have taught me so much about this program already and I am advertising the heck out of it!

Posted by Leesa Finley, RED Properties - Raleigh NC Real Estate (RED Properties) over 10 years ago

Hi Eleanor - I agree that this is a fabulous loan program. Glad you have many areas where your clients can take advantage of it, and lenders willing to continue funding these loans while congress figures things out.

Posted by Karen Cooper, Helping Homeowners w/Home Loans in 27 US States (Karen Cooper | Sr Retail Loan Originator ! NMLS # 223305 | 360 Mortgage Group LLC Austin Texas) over 10 years ago

Great synopsis of a great loan program Eleanor, but do note there is NO limit of what the seller can contribute as long as it's "reasonable". I've had deals where the seller contributed over 6% on low purchase prices and that saved the deals.

I do encourage you to post this in Rural Development Loan Group here in AR. This information needs to be heard!

Gerry Suarez, Jr.

Your FHA Loan Pro!

Posted by Gerry Suarez Jr., FL Mortgage Guru (Jet Home Loans NMLS 1660135) over 10 years ago


Here is yet another example of why I subscribe to your BLOG. This post sums up information our clients can REALLY use . THX!!!

Posted by . 4Terra Land Brokers .. 828-776-0779 Asheville NC, What's Most Important to YOU? Call(828)-776-0779 ( REAL ESTATE RESOURCES & NETWORK ) over 10 years ago

Hey, any updates this month about USDA mortgage rates? and anything else
you might have info on?
Thanks, Happy Spring

Terry B

Posted by Terry Bakowski over 3 years ago