If you’re interested in purchasing a new home and don’t have the best credit and don’t want to live downtown metropolis, then a USDA home loan may be the right home loan option for you. Low-income families who live in “rural” areas of the country are great candidates for a USDA home loan. As long as you stay in that same area, you’ll only need to qualify for the home loan one time. This means if after a few years you’re making a substantially more amount of money than when you first qualified, you don’t have to requalify if you buy a home in the same area. Remember, USDA loans are for low-income families, but that doesn’t mean you’re stuck as a low-income family forever and can’t earn more in the future.
Basically, if you’re thinking of buying a home, make sure it’s a modest home in a rural area or small town and if you have relatively low income compared to the rest of the community, you have nothing to lose and all to gain by applying for a USDA home loan.
Frequently Asked Questions Pertaining to USDA Home Loans
Q: Will I need a down payment?
A: Not exactly, qualified borrowers can buy a home with the USDA home loan program without having to put any money down, which can ultimately end up saving your thousands!
Q: Do USDA home loan require a PMI?
A: Nope, instead of PMI, USDA loans usually include a premium for upfront mortgage insurance and this is usually less than 2% of your total loan.
Q: Do I have to be a first time home buyer to qualify?
A: Absolutely not! Anyone can apply for a USDA home loan, all families and individuals who have owned property in the past are not barred from this program.
Q: Can I use a USDA home loan for a rental or investment property?
A: Sorry, no. USDA home loans can only be used for your primary residence.
Q: How much are the closing costs?
A: The closing costs for a USDA home loan can vary depending on your location and the specific home you’re buying. However, you can include your closing costs into your home loan.
Q: Can I use a USDA home loan to purchase a modular property?
A: Yes, but your will need to be able to meet appraisal requirements.
What is the purpose of USDA home loans?
The USDA Home loan was intended to help low income to moderate income families living in rural areas eligible for home ownership. USDA loans provide affordable opportunities and assistance programs for families interested in becoming
homeowners. The USDA lists resources that can help you determine your eligibility on their website. Ready to contact a lender and get started with your USDA home loan? Click the link below to get matched with a qualified lender who is eager to help you with all your USDA home loan needs and can answer any questions you have regarding the USDA home loan process. IT’s quick and easy and only takes a few minutes to get started, so what are you waiting for? Click now!
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