USDA loans are extremely beneficial mortgage options for low-income borrowers who wish to buy a house in rural settings. If you are someone with low income, trying to buy a house away from the metropolitan areas, you can trust PierPoint Mortgage as we can assist you in getting a USDA Loan!
Borrowers hail from different families having different socioeconomic statuses. While some are high-income families, others are moderate-income households or low-income borrowers.
For the former segment of society, it is comparatively easier to pay a down payment but for the latter, handling finances can be a little challenging. And so, USDA loans can be of great help to low to moderate-income families across the United States.
USDA loans are zero down payment mortgage options supported by the United States Department of Agriculture (USDA) and provided by lenders that have received USDA approval. These loans are only available to finance rural properties and hence can sometimes be referred to by the locals as the rural development loan.
As stated, these loans are made available by the USDA or United States Department of Agriculture where the private lenders offer these loans. Although these loans are exclusive to homebuyers in rural areas, they work just like any other government-backed mortgage option. The loan is approved after checking the requirements and once you have got the money, you will need to pay it back in form of monthly mortgage payments.
Under USDA Loans, there are two types: direct loans and guaranteed loans. The direct loans are funded directly by the USDA, the guaranteed loans come from third-party lenders or lending services.
It can be a little confusing for a layman to understand what is what, so turning to a mortgage broker is a good idea. You can trust PierPoint Mortgage as we will analyze the situation and guide you on which option is the best for you.
There are a lot of things one needs to know before trying to get a USDA loan. And the most important of those is to know the requirements. So, for USDA loans, you must meet these conditions:
A borrower is only eligible for a USDA loan if his monthly income is below or equal to 115% of the area’s (where you wish to buy the house) median household income. Anyone with a higher income will not be eligible.
US Citizenship or Legal Permanent Resident
The borrower must be a US citizen or a legal permanent resident. And the borrower must provide a government-issued document or ID as proof of it.
Minimum Credit Score Set by the Lender
Apart from being within the median income limits, the lender will also check your credit score & debt to income ratio. The credit score requirements can vary, in most cases, it should be at least 640.
The Property Should Serve as a Primary Residence
If you are buying a property that is, take note, for your primary residence, only then you can become eligible.
Eligible Rural Area
A rural area can be a town, village, outskirts of suburbs, and any similar area that has been marked as a rural zone. And you can get a loan only if your dream house is in that area.
The fundamental necessities for the sort of property qualified for a USDA credit are as per the following:
USDA loans are worth considering if you are planning to buy a home in rural areas. The USDA home loans are also known as home loan assistance programs that are for non-farm owners aimed at improving their quality of life and economy. The USDA home loan helps low-income families to purchase homes in rural areas.
USDA loan is appropriate for individuals with low income. This loan is perfect for people wanting to buy their property outside of the densely populated city. The borrower doesn’t have to pay any down payment, unlike other mortgage programs.
The requirements of getting approved for USDA loans are flexible which attracts many potential borrowers. The needed credit score is also lower than many other mortgage programs.
The United States Department of Agriculture’s (USDA) Rural Housing Service guarantees loans up to 100% financing for qualified customers living in rural areas around the country.
Most other mortgage options require a 3- 3.5% down payment and have quite high-interest rates. With a USDA home loan, you might be able to get a home loan with a lower interest rate and zero down payment.
Our trusted mortgage brokers will help you explore the many advantages of this unique type of loan.
With USDA Loans, 100% financing is available. Qualified buyers don’t need to pay down payments.
No, there are flexible credit and qualifying guidelines. Thin or alternate credit allowed.
USDA home loan comes with low closing costs options.
Our top mortgage brokers in the USA have extensive knowledge and experience to make your USDA home loan mortgage process easier and seamless for you. Although we also offer other types such as FHA Loans and jumbo loans, we can help if you seem fit for USDA loans.
With the right tools and expertise, they will guide you through the whole process starting by helping you discover if you are qualified for a USDA loan or not.
Finding the right mortgage broker that can help you get the best competitive rate can be difficult. To make sure you are not lacking in any aspect, reach out to the most trusted team of mortgage experts at PierPoint Mortgage.
Our team is ready to help you consider all your home loan options. We are licensed and have been in the business since 2003. Hence, we know the financial and home loan sector very well!
In case you have any queries or want to learn more about your USDA home loan eligibility, give us a call right now or you can simply visit our nearest office.