Epic Real Estate Investing - USDA Loan Requirements for 2025 (BEST $0 down loan) | 1430

Episode Date: February 20, 2025

This episode provides essential information and strategies for first-time homebuyers and aspiring real estate investors on leveraging USDA loans in 2025. The script covers the benefits of USDA loans, including zero down payments, income limits, and eligible property areas. It also debunks misconceptions, offers practical investment strategies, and shares success stories. Additionally, the video promotes a comprehensive 12-week real estate program designed to help individuals close their first deal within 45 days, highlighting tools and resources available for aspiring investors. Need money? Get 0% interest capital for your real estate investing business 👉 https://NoCostCapital.com Want passive income? Grab a free copy of the Frustrated Investor's Guide to Passive Income at 👉 https://FrustratedInvestor.com Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-i-a-s.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. Look, I'm going to level with you. If you're just looking to buy your first home, awesome. This program could not only save you a ton of money, but actually make it happen. And hey, I'll show you how to think about it from an investment angle, too, because let's face it, your home is probably the biggest investment that you'll ever make. Might as well be smart about it. And if you're specifically here because you want to start investing in real estate but don't

have a ton of cash, even better. USDA loans might be the most overlooked hack in real estate in 2025. So here's the deal with USDA loans this year. Here are the basic rules. Zero down. Yeah, for real. Income limits are $121,550 for up to four people in the household. The property, it must be in a USDA eligible area and a 580 credit score minimum for automatic approval. That's it, just 580. And the current rates right now are around 6 and a quarter to 6 and 3 quarter percent. To the hidden benefits. You can buy up to four units. You have access to lower mortgage insurance than FHA loans. You can combine with seller credits to up to 6% of your purchase and your future rental income that can help you qualify for your next loan. Number three, here the strategy plays. You can house hack with multi-units. You can build landlord experience. You can use your rental income to qualify for your next loan,

and you can refinance after building equity. And here's what most people get wrong, real talk. They think USDA loans are just for farmland. Wrong. Pull up the USDA eligibility map right now. You'll see eligible areas right outside major cities. We're talking normal suburbs here, not cornfields. And here's the best part. In 2024, they added 47 new census tracks to the eligible areas. That's 47 new opportunities most investors don't know about. All right, so let's get real about the numbers.

And I mean, real, real. First up, there's no official maximum purchase price with USDA loans. And I love this part because it freaks people out. They're like, what's the catch? Here's how it actually works. The amount you can borrow. comes down to two things. One, your income. It can't be too high and can't be too low. Two, your monthly payments. They got to be reasonable. So let me break this down. For 2025, your household can make up to

$1,550 if you got one to four people, 160,000, $450 if you got five to eight people. Now, here's a real-world example that'll make this super clear. Let's say you make $100,000 a year. That's your household income. Your maximum monthly housing payment that you can handle, it's $2,833. This lets you buy something around a $350 to $450,000 home, depending on rates in your area, all with zero down payment. Still blows my mind. But let's look at it a more typical first-time buyer investor scenario. Say you find a $300,000 duplex. We'll use that as an example.

You've got zero down, so that saves your $30,000 right off the bat. $2,157 monthly payment, including taxes and insurance, you rent one unit for $1,400 so your actual cost is $757 a month. That's it. So after moving out, rent both units, that's $2,800 a month total. So you cash flow $600 a month. You built $30,000 of equity. And here's what's wild. Most USDA purchases are between $200 to $600,000. But remember, it's not about the price ceiling. It's about what makes sense for your numbers. And by the way, when I say your numbers, the banks look at your debt to income ratio. They want your housing payment under 34% of your monthly income and all of your debts,

including the house, under 41%. Translation, be realistic about what you can afford. This isn't about buying your dream home. It's about getting your foot in the door of a market that's not exactly waiting around for anyone. So here's how to play this in 2025, the actual strategy. Year 1, buy a multi-unit with USDA loan, live in one unit, rent, the others and build landlord cred. Year two, you move out, you rent all of the units, and then you

use your rental history to qualify for your next conventional loan to buy your next property. And then years three through five, you refinance that USDA loan, pull out the equity, and repeat the process. Look, here's the truth nobody wants to say out loud. Real estate prices aren't going back to normal. That train, it left the station a long time ago. But here's the good news. There is still time to hop aboard if you're smart about it. USDA loans are like the backdoor entrance to real estate investing. No, your first property probably won't have that fancy kitchen that you've been dreaming about. But while everyone else is waiting for their dream home and watching prices climb higher,

you could be building equity, learning the ropes of property management, and setting yourself up for that dream home down the road. You see, every real estate empire started with one property, and usually not a pretty one. Okay, here's the stuff you need to know and watch out for. One, it must be your primary residence. Two, income limits are strict. Three, the property has to meet USDA standards. And four, a minimum 12-month occupancy is required.

But here's the thing. These limitations are actually good for us investors. You see, they keep the competition down because most people hear these rules and they move on. Their loss. Our game. Quick story, had a student named Mike, not his real name, because some of this stuff is just too good to broadcast with real names. Mike had about $7,000 to his name.

Not exactly real estate mobile money, but he found this little duplex right outside of Charlotte, USDA eligible area, bought it with zero down, lived in one unit, rented the other. That other units rent? It covered about 85% of his monthly payments. 12 months later, he moved out, rented both units, and now the place cash flow $600 a month.

and he used his newfound landlord experience to get a conventional loan on his next property. One USDA loan turned this guy from aspiring investor to actual multi-property landlord. Now, USDA loans are just one way to get started with zero down. There are actually several other strategies out there, some even better depending on your situation. Because here's the thing. After helping thousands of people get started in real estate, I realize something. Most people don't fail because of a lack of money. they fail because of a lack of ideas.

They fail because they're trying to figure everything out alone. That's why I created something pretty special. It's a complete system where my team and I help regular people land their first real estate deal in 45 days or less, without the headaches, without the hassles, and without needing previous experience. We're talking about a complete done-with-use system. Together, we find the deals. We contact the sellers and we analyze the numbers. We even guarantee that you'll walk away with $10,000 in equity and $300 a month

the cash flow on your very first deal. And if that wasn't enough, here's what makes this really different. We build everything around you. We start by mapping out your personal real estate DNA code. Then we plug you into our 12-week program that's helped countless people just like you close deal after deal after deal. You'll get our AI-powered seller simulator to master negotiations. You'll get access to our seller-sniper system to find killer deals. You'll get direct access to funding. So money, that's never an issue. And my team will actually contact the for you and the deal analysis. We'll do that for you too. Think of it like having a complete real estate business in a box. I hate that expression, but that's basically what it is with me

personally guiding you every step of the way. But listen, we're pretty selective about who gets in. So if you've watched this far and you're serious about building real wealth through real estate, whether starting with the USDA loan or one of our other zero-down strategies, head over to Epicapprentice.com. Go there right now, answer a few questions, And let's get your first deal in the next 45 days. You see, while everyone else is waiting for the perfect loan program or the perfect market conditions, you could be closing your first deal just weeks from now. The choice is yours.

Remember, real estate investing isn't about having all the money up front. It's about knowing how to use the system. And right now, USDA loans might be the most overlooked system out there. Let's build that portfolio. I'll see you next time. Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too?

There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow.

You didn't know home for us. We got the cash flow. This podcast is a part of the sales. C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.