Have you ever wanted to give up your venti-mocha-latte-drinking-laptop-typing life and move away to the countryside? Maybe own some chickens? Grow your own hydroponic food. Live off the fatta da land, as Lenny would say. Well, you’re not alone. There’s been a sweeping social media movement that’s been steadily growing called cottagecore, and chances are that if you self-describe as any of the above—you might just be the right fit for a USDA rural housing loan.

What is Cottagecore?

To be fair, people who are into cottagecore aren’t actually interested in becoming farmers. They’re wistful for an idea of American life that’s no longer common. They enjoy the idea of a life set in remote places, full of tranquility and self-sustainability. Many cottagecore fans are younger people from underrepresented minorities, but they’re also adults in their twenties looking for a change of pace, biding their time to buy a home. Without knowing it, the cottagecore movement is showing home sellers what future home buyers want. 

More Americans rent homes now than ever before, and the younger generation is growing up knowing exactly why owning a home is so important. The answer? Wealth and security. It’s plain and simple really. While money is important, wealth is a future investment. It’s the gift that keeps on giving.

With so many expensive and overcrowded metropolises, first time home buyers are looking to buy cheaper homes in smaller hubs. There’s no denying that in today’s digital world we all crave connection now more than ever, but the types of connections we want are changing.

Luckily for you, your pseudo-nomadic ways are just what the United States Department of Agriculture (USDA) is looking for. The USDA rural home loan is meant for people who are looking to live further off the grid. And while these USDA rural housing loans are not for farmers, there’s nothing stopping you from planting a garden in your backyard. 

This loan is available to anyone looking for a residential property in an eligible rural or suburban area. The USDA’s definition of rural is pretty lax, so make sure to check their property eligibility maps to see if the area you’re interested in meets their definition. If you live in South Florida and are looking to for USDA loan-worthy areas, Homestead is a great place to start your search.

There are quite a few perks to this loan program:

No down payment

You read that right. USDA rural housing loans allow buyers to finance a home for up to 100%* of the price, so no down payment is required.

Lower credit scores are acceptable

Don’t worry if you have less-than-perfect credit. Scores of 640 and higher will have faster processing. Even so, please keep in mind that scores of 640 and below may face stricter underwriting standards.

No loan limits

The USDA doesn’t have any loan limits in place. That means your purchasing power may be higher than it would be with another loan program. Your lender will be able to help you determine how much you qualify for.

Multiple property types

Eligible property types include existing, new construction, condos, townhouses, newly manufactured**, modular, and short sales or foreclosed homes.

What are the requirements?

  • Be a legal U.S. citizen who is 18 years or older
  • The home must be for primary residence
  • Stable and dependable income
  • Adjusted household income equal to or less than 115% of the area’s median income

 

Most of the other requirements for a USDA loan are very flexible, including credit and employment history.

If you’re ready to stop scrolling through Instagram to like another #cottagecore farm picture and leave the city behind, a USDA loan may be right for you. Contact one of our licensed Mortgage Consultants if you have any questions about buying a home with a USDA loan, see if you qualify.

*100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included. 

**Only newly manufactured homes are permitted, and they must come from eligible dealerships.