Are you shopping for a home in a rural location? If you would like to qualify for zero down and other fantastic benefits, consider applying for a USDA mortgage. The USDA loan program is available to homebuyers across the country.
The USDA loan program allows you to apply for a government-insured mortgage, much like the FHA and VA loan programs.
In the case of USDA loans, your mortgage is backed by the US Department of Agriculture (USDA). In the past, this program was the “Rural Development Guaranteed Housing Loan” program. Sometimes, it is still called this colloquially.
By insuring your mortgage with USDA backing it reduces your loan risk level. Doing this makes it possible for lenders in turn to offer you favorable rates, terms and features on your loan.
If you qualify for a USDA mortgage, these are the advantages which you can look forward to:
You could move into a home in a rural area with zero down.
Interest rates on USDA home loans are low and they only offer fixed rates.
USDA mortgages feature affordable closing costs.
With USDA financing, you will be eligible for discounted private mortgage insurance (PMI).
While you must meet the income requirements, you do not need a perfect credit score to obtain a USDA mortgage.
USDA mortgages can be used for home purchase, land purchase, home construction, or for repairs or upgrades.
Whether or not you are eligible for a USDA mortgage depends both on your borrower profile and on the location of the property you want to purchase.
The house must be located in a “rural” area. This actually in some cases may resemble a suburban area. The only requirement is that the population for the area is capped at 35,000 people. That means that USDA rural loans are available in quite a few regions. Even if you are relatively close to a major city, you might well be able to obtain one of these loans.
Other requirements for qualifying for a USDA mortgage are as follows:
You must be a U.S. citizen, non-citizen national, or qualified alien
Your income must not exceed a maximum cap for your family size.
You must show a willingness to meet debt obligations
Ready to move into the rural home of your dreams with affordable interest rates, zero down and discounted PMI? The Best Home Loans is here to help you make it happen. Please call us now at (800) 293-2133 to schedule your USDA rural loan consultation in California, Texas, Florida, Illinois, or any of the 50 states.
The Best Home Loans is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.