Acquiring a USDA loan can be as easy as 1, 2, 3. First, you have to find a USDA-approved lender in your area. Then, you have to apply and be eligible for the loan. Finally, you have to start loan payments. The USDA makes rural development loans available in rural communities throughout the country. The USDA’s goal is to improve economic conditions in rural America by assisting in the development of adequate housing, business and community facilities.
In order to qualify for a USDA loan, you must live in an area that qualifies for USDA assistance. There are income restrictions that may apply. For instance, you must meet the USDA’s income limits for your county and household size. Also, you must intend to use the property as your main residence.
The process of applying for a USDA loan is fairly simple. First, find a USDA-approved lender in your area. Then, apply for the USDA loan. Finally, start loan payments and enjoy the benefits of a USDA loan.
USDA Loan Gives You More Home Buying Choices
While a USDA loan is a mortgage loan backed by the U.S. Department of Agriculture, you are not restricted to purchasing a home in a rural area. USDA loans are available in suburban and urban areas as well. They also can be used to purchase a manufactured home or to refinance an existing loan.
Your eligibility is determined by your “household income” and the area where you live. Each state sets its own income limits for the USDA loan program. For instance
USDA Loans Are Flexible and Affordable
Your monthly mortgage payment may be less than what you are paying out-of-pocket each month on your mortgage or auto loan. In addition, many USDA-approved lenders offer up to 100% financing. Because the USDA doesn’t require a down payment, this enables you to purchase a home with a low down payment or even to buy 100% of the home. This makes it possible to purchase a home with low cash reserves or even when your credit is less than perfect.