Chances are you might not have ever heard about USDA loans before. The USDA Home Loan Program is also known as the USDA Rural Development Guaranteed Housing Loan program, Rural Housing Loans, or a section 502 loan. The purpose of these loan programs, which are run by the USDA, is to help provide affordable housing among rural communities throughout the United States.
If you are looking to buy a home or property in a rural area, consider a USDA home loan. CMA is an expert in the ins and outs of USDA loans. So, contact us TODAY for your FREE consultation at (800) 927-6560 or click here to apply online.
Basics Of The USDA Home Loan:
Also known as a rural development loan, USDA loans are government insured and will allow you to purchase your home for literally no money down. Qualified buyers will be offered 100 percent financing and even allow for all closing costs to be paid by the seller or rolled into the loan and financed in that manner.
The USDA home loan also offers fixed rates. In fact, the guidelines of this program prevent it from ever being offered as anything other than a fixed rate mortgage. Plus, you will find USDA loans to have some of the lowest rates of any mortgage loans available.
Credit History Needed To Qualify:
USDA loans will require the borrower to have a history of paying bills in a timely and responsible manner. This does not mean you will need a perfect credit history, so long as your credit has been reestablished over the past 12 months or so. If there are any open judgments or collections, these will need to be taken care of (i.e. paid off) before settlement.
USDA Home Loan & Income Requirements:
In order to qualify for USDA loans, you must be able to document your income for at least a two year period leading up to the current time. This means a solid employment and consistent income history. Of course, there may be some exceptions made, like in the case of students. It is also interesting to note that assets are not required to be listed, although they may be able to help in the case of potential credit blemishes.
Home Location & Additional Property Guidelines:
Your home must be located in a designated USDA rural area in order to qualify for USDA loans. Amazingly, there are many areas listed as such that you might not have otherwise considered to be rural.
Remember that the USDA home loan program is designed primarily for those who do not qualify for other financing and do not have adequate housing. Because of this, the program will also not allow for the purchase of a second or additional property. If you already own an ‘adequate’ property, you will not be allowed to utilize the USDA program. Even here there are certain exceptions, such as owning a mobile home (this is not considered to be an ‘adequate’ second property).
Contact a USDA Home Loan expert today. We have Mortgage Advisors standing by to answer all of your questions about this important, low cost US government home loan program. Call (800) 927-6560 or click here to apply online.