USDA Loan is a mortgage loan that requires zero down-payment. It is a special loan prepared for both suburban and rural homebuyers. If you are not wealthy but you want to buy a home, then one of the best things to do is to go for this loan. It will work perfectly for you if you are not qualified for a traditional mortgage loan. The loan is under the control of the United States Department of Agriculture but it is unfortunate that many people are not even aware of this loan. The loan is issued via the USDA loan program and it is also called the USDA Rural Development Guaranteed Housing Loan Program.
The loan program has assisted so many rural dwellers in the United States to buy their own homes. The loan can also be used for building your home in rural areas. In 2017 alone, about 127,000 people benefited from the USDA Loan. The purpose of the program is to help to improve the economy of rural America, as well as, the quality of life in those areas. The interest rate is very low and there is no need for a down payment at all. It is equally very easy to access, provided you reside in the rural or suburban areas.
USDA Loan Qualifier. USDA loans help make owning a home more affordable for those living in eligible rural and suburban areas and with household incomes within the USDA limits.
USDA loans, also known as rural development loans, are an affordable mortgage option for buying a home in a qualifying rural or suburban area. They’re backed by the U.S. Department of Agriculture, making them more accessible than other loan options.
The various types of USDA Loan available
You can choose from any of the three types of USDA Loans available; they are highlighted below:
- Loan guarantees: This type of USDA Loan is made available by the local lender and it has similarity to the VA loan and FHA loan. There is no down payment at all. However, the borrower will need to pay a Mortgage Insurance Premium if he does not have any down payment.
- Direct loan: it is made available via the USDA. It is a type of mortgage designed for very-low-income and low-income earners in rural areas. The interest rate is very low and it can be as low as 1%.
Home improvement loans and grants: The loan gives homeowners the financial assistance required for upgrading or repairing their homes. The package can go as high as $270,500.
How to qualify
If you are to qualify for the USDA Loan, you need to have the following eligibilities:
- You must be a permanent US resident or citizen
- It will consume 29% of your monthly income every month
- Your source of income must have been dependable for at least 24 months
- Your credit history must be acceptable
How to apply successfully
If you want to apply successfully for the USDA Loan, then you need to get in touch with us at Mission Pacific Mortgage. We are focused on helping you to realize your goal and we can assist you with the loan application, enabling you to get it fast so that you can use it for the intended purpose. Aside from USDA loans, we can also help our clients to get several other types of loans. We have a team of professional loan officers at our website, who are ever ready to provide you with the assistance you need for the USDA Loan application.