Individuals or families who want to purchase homes in rural areas often find USDA loans to be the best option.
For eligible applicants, they can offer an opportunity for a person or family to purchase their dream home without having to meet some of the stringent requirements often found in conventional mortgage loans.
Offered through the United States Department of Agriculture, USDA loans are mortgage loans for rural and suburban homebuyers. Unlike many other mortgage loans, they require no down payment. Their purpose is to improve the quality of life and economy in rural America.
They also offer low-interest rates to eligible applicants and are also relatively easy to get for those who meet the requirements. More than 126,000 families were able to purchase and upgrade their homes in 2017 through the Rural Development program.
Despite it being said that these loans are very accessible, applicants still must meet the eligibility requirements, which are listed below.
There are requirements on how the loan proceeds can be used, but they are quite generous.
They can help low-income home buyers in many ways. When consumers can’t purchase a home or obtain a mortgage loan, it’s usually because they can’t afford a down payment. Or it can be that they can’t afford high monthly payments that may result from high interest rates. USDA loans are known for offering homebuyers lower interest rates than they’d find with conventional loans, which mean lower monthly payments.
Another bonus, and probably the biggest one, is the zero-down payment feature. A large down payment requirement is probably the biggest reason aspiring homebuyers cannot buy homes today. If a homebuyer must put down 20 percent on $150,000, that comes to $30,000. By not requiring a down payment, the USDA loan is very much helping low-income individuals become homebuyers.
If the USDA loans sounds like it might be the right loan for you, and you think you may meet the requirements for the loan, don’t wait another second. Contact the Vercellino team today. Speak with our qualified loan specialists and see what we can offer you.