Wednesday, June 22, 2016 - Article by: Ivan Diaz - Landmark Mortgage -
Are you more comfortable out in the country, listening to the birds chirp and sing, with plenty of space to call your own? If so, then a USDA mortgage loan may be the perfect option to get you and your family into your own home today!
What is a USDA mortgage loan?
A USDA home loan is also known as a USDA Rural Development Guaranteed Housing Loan Program mortgage loan is a mortgage loan offered by the US Department of Agriculture to prospective homeowners who are interested in purchasing rural properties. These loans are backed by the federal government - similar to FHA and VA mortgage loans - which make them an attractive option for many lenders. Additionally, the USDA itself does issue some mortgage loans, but these loans are issued directly only to low and very low income applicants.
Who is eligible for a USDA mortgage loan?
In order to qualify for a mortgage loan under the USDA program, applicants must be US citizens or permanent residents and your potential mortgage payment (including taxes and homeowners insurance) must be less than 29% of your total monthly income (either your income or your household income, depending on who will be on the mortgage loan). You must be able to show a 24-month history of steady and dependable income and your credit history must be fairly healthy, showing no items in collections within the past year. If you have a credit score of at least 620, you will likely qualify for quick, streamlined loan processing, although USDA mortgage loans are available to buyers with scores as low as just 580.
What are the advantages of a USDA mortgage loan?
One of the biggest advantages of a USDA loan is that this program requires as little as no money down for a down payment! Not having to wait to purchase a home until you have a hefty 20% down payment means that you can start building equity faster and get your family into a stable and forever home sooner than you might have thought possible. Additionally, because these mortgage loans are backed by the US government, they offer competitive interest rates and repayment terms.
If you are looking for a home outside of an urban area, contact an experienced lending professional today to learn more about USDA loans. USDA are one of the least well-known mortgage loan programs offered by the US federal government, but for many people, it is a fantastic option that will get them into the more rural home and country lifestyle they are looking for!
Didn't find the answer you wanted? Ask one of your own.