What is a USDA home loan and how can it help me for my first home?

Bill...USDA is an option worth looking at. There are geographic and income limitations that exist but most of York Cty does qualify. The one thing I would be worried about is qualifying given just the $4000 a month income. I would be happy to explore all your options with you. Superior Home Mortgage is a direct lender in business for over 20 years. My office is located just over in Chester Cty. Please email me at jcafiero@supmort.com to discuss further.

Bill the income is a barrier for USDA if you have no children or other dependents than that could change. USDA or FHA are both low down payment options USDA is more expensive than FHA. Let me guide you through your purchase 25 years lending in all states. I can be reached at ballen@accessnational.com

USDA home loans are specifically intended for rural area's. On The USDA website, they have a map where you can look up the address of the property your looking at and it will tell you if that home will qualify for USDA funding. A better way to go is FHA financing.. you only need 3.5% down and you can purchase any home in any neighborhood... WilliamAcres.com

To the two Bills that are lenders. The monthly factor for MI on a FHA loan is almost 3 times more than FHA. At the same rate not sure how you are coming up with FHA being a better option if both exist. Also the income limitations at $4000 a month is not going to be a problem. The income limit for just a 2 person household is $79,700

jcafiero is correct regarding MI and maximum income however he says he's a direct lender. I think he means guaranteed lender. Only the USDA is a direct lender and the maximum household income for a family of 2 is $44,350.

Update - should have reread my postDirect Loan - max income $44,350Guaranteed Loan - $79,700

Bill. USDA has the potential to be a great loan option for you. I would suggest speaking to a mortgage professional more extensively to see if that is the best program for you as well as getting an idea of what loan amount/sales price you might qualify for. If you would like to speak more about your home search I would be happy to speak with you about it!You can email me at nfratini@advisorsmortgage.com. We are located outside of Phildelphia. I hope to hear from you. Thanks!