Looking to buy a home in Cumberland County, Pennsylvania?
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You might want to make a quick check to see if you and the property are eligible for a Pennsylvania USDA Mortgage, also known as a Pennsylvania USDA Rural Development Loan.
Here's Why...
USDA home loans offer a few benefits that other mortgage programs cannot match: including no down payment and financed closing cost. If the home appraisal allows, the closing costs can also be wrapped into the mortgage resulting in no money needed at the closing table.
USDA is the only mortgage program that allows for all closing costs to be financed into the loan amount on a home purchase. Interest rates for USDA mortgages are comparable and often lower than the low fixed rates of Conventional, FHA and VA financing.
The USDA Mortgage program does have restrictions when it comes to location and income, so a quick check on this key qualifying criteria should be done first. Even if you do not believe the property you are looking to purchase is considered rural, it might be worth a quick property eligibility check. It is often surprising how many properties are actually USDA Eligible even though they are considered to be in a town or suburban area.
In addition, if you believe your household income may be too high to qualify for USDA, it worth a quick look at the USDA income requirements. The USDA allows for many deductions that may help you meet the USDA maximum income restrictions.
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Benefits of the USDA Mortgage Program
- True 100% no money down financing.
- The ability to finance in your closing costs (if the appraised value supports the loan amt)
- The seller may contribute up to 6% of the purchase price towards your closing costs
- Low fixed interest rates.
- More flexible credit qualifying guidelines with minimum 620 credit score
- Often available for properties in towns and suburbs too
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What portions of Cumberland County are eligible for USDA Financing?
The areas in Cumberland County that are restricted from this program can mainly be found in the area right across the Susquehanna River from Harrisburg and in the city of Carlisle. The majority of of Cumberland County is USDA eligible.
USDA Eligible Areas in Cumberland County include...
- Shippensburg
- Boiling Springs
- Dillsburg Junction
- Mount Holly Springs
- New Kingstown
- Newburg
- Newville
- Plainfield
- Schlusser
- Upper Mill
- Washington Heights
- any obvious rural locations
As always, if you want to find out if a specific property is eligible for a USDA Mortgage in Cumberland County, simply type in the address on the USDA Eligibility Map below....
USDA Mortgage Eligibilty Map
What are the USDA Mortgage Income Limits for Cumberland County?
Household Size: 1-4 Family Members 5 or more Family Members
Maximum Adjusted Income $83,400 $110,100
If at first glance, it appears your household income exceeds the above limits, it is worth checking the USDA Income Calculator on the USDA website (link below). The USDA allows for several deductions which may allow your Household Income to fit within their Maximum Adjusted Income Guidelines.
USDA Income Eligibility Worksheet
Ok, the Property is in a USDA Eligible Area and your Household Income is within the USDA Income Limits, now what?
Like all mortgages, USDA Mortgages do require an applicant to qualify based on recent credit history. USDA credit requirements are some of the most flexible of any mortgage program available. More detailed information about USDA Mortgage Credit Requirements can be found with the link below...
USDA Credit Requirements
For buyers looking to purchase a home in Cumberland County Pennsylvania, the USDA Rural Development Mortgage is definitely worth a look. Feel free to contact me with any further questions about the program.
