The US Department of Agriculture (USDA) introduced the USDA housing loan program to help people who are planning to buy or build homes in the countryside. USDA approved lenders offer these loans. These loans are offered for buying a house for resale, buying a new house, building a house and for renovating a house that is already owned and can dig this here.
Some of the advantages of USDA home loans:
No down payment
This is one of the few mortgage lending programs that offer 100 percent financing. This means that it is not necessary to have a down payment for buying a house under this loan scheme. You can get up to 102 percent financing of the assessed value of the house.
Homeless in the meaning of home
In accordance with the rules of crediting USDA; there is no maximum value limit for a home that a borrower can buy under this mortgage loan scheme. The borrower’s solvency is checked when determining the loan amount to which he is entitled.
Lower interest rates
The lenders who give USDA loans offer the lowest fixed interest rates on 30-year loans. Since these loans are guaranteed by the USDA, lenders have minimal risks and can afford to offer mortgages with the lowest interest rate. These loans are quite cheap compared to FHA and regular loans.
No need for mortgage insurance
To get this loan, you do not need to buy expensive mortgage insurance, which, otherwise, increases significantly in monthly mortgage payments.
Flexible qualification requirements
To qualify for this mortgage loan, you must have a FICO credit rating of at least 620. However, this limit is flexible, and even people with bad credit scores are sometimes eligible for loans.
Eligibility criteria for housing loans in the United States
To take advantage of this mortgage, you must fulfill the following conditions.
- You must be a US citizen.
- You must buy property in an open country or in an area with a population of less than 10,000 people. In some cases, real estate on the outskirts of cities and towns are also eligible for this loan. You should consult with the village department for more details about this.
- The house should be used as a primary residence.
- You must not own a home in the same area.
- You must meet income requirements as required by your state.
If you are planning to buy a house in the countryside, this is a fantastic opportunity for you. Not only is the interest rate on this mortgage offer the lowest, but the eligibility conditions are quite flexible. The USDA has developed this scheme to help financially weak people have their own home. It is also a step towards the development of rural areas.