December 5th, 2018
When it comes to government-backed mortgage loans, things like the FHA or HARP loans are the ones that get most of the attention. However, there's another loan that deserves taking a look at and that could help millions of people living in rural areas who have low incomes. The USDA home loan is often overlooked but could provide you with the opportunity to buy your dream home.
What Is The USDA Home Loan?
The USDA mortgage assistance program is a government packed program designed to help those living in rural and suburban areas buy their dream home. Those who qualify can receive a home loan with
These loans are targeted towards those with low incomes in low income areas and in rural locations, and there are actually multiple programs through the USDA including those that provide grants for repairing and upgrading homes. The benefits of the USDA home loan include easier requirements and more favorable loan conditions, making it a great choice for those who may not qualify for other, more traditional loans.
What Are The Eligibility Requirements For A USDA Home Loan
There are several key requirements that you must meet in order to be eligible to receive a USDA home loan. The basic requirements include the following.
•You must be a US citizen
•You must have an income of no more than 115 percent of the median income for the area you call home.
•You must live in an area defined by the USDA as rural. More than 95 percent of the country actually qualifies, so your odds of qualifying regional are better than you might think.
•Your credit score should be 580 or higher. While lower scores may qualify, 580 is the preferred threshold and will make it much easier to get a USDA home loan.
•The home you're considering must meet all local building codes and must be considered 'modest' for the area. Factors like size, design, and cost are all factored in here.
•Those who currently lack a safe, decent, or sanitary home will be given priority during the application phase.
If you can meet these basic requirements, you could be eligible for a USDA home loan and could potentially get government assistance buying the house of your dreams.
The Big Benefits Of A USDA Home Loan
A USDA loan can provide 100 percent of the total purchase price of a new home, giving you the ability to buy that home of your dreams and finally become a homeowner. There are other benefits as well, including.
•Interest rates are lower than other government-backed loans
•You can secure a USDA home loan without having to come up with a down payment
•A wide range of people are eligible, making it easier to get a loan and buy your home
The bottom line is simple - those who live in rural or suburban areas and who want to buy a home should take a look at what government-backed loans like these have to offer. The USDA loan could be the best path to ownership available to you and deserves your attention if you're thinking of buying a home.
Getting Your Loan
While they are backed by the US government, USDA loans aren't actually issued by the federal government. Instead, you'll have to secure the loan through a traditional lender, but they issue a loan backed by the USDA loan program.