Are you eligible for a USDA Loan?
The Single Family Housing Program under the United States Department of Agriculture (USDA) provides homeownership opportunities to buyers looking for a home in rural areas who meet certain income requirements. There are several loan, grant, and loan guarantee programs that assist people in finding a home that suits their needs without making them break the bank to do so.
The USDA Loan is government-backed by the USDA, making its qualifications less restrictive than a conventional loan. This loan has a zero down payment for eligible rural homebuyers, and gift funds or grants can go toward their mortgage. USDA funds can be used for refinancing of eligible loans and for new or existing residential property to be used as a permanent residence. Of course, the maximum loan limits vary based on the location of the home being purchased.
As for qualifying criteria* for a USDA Loan, the requirements for borrowers are pretty straight forward. Individuals must meet income-eligibility requirements as outlined by the USDA. They also have to meet credit obligations such as paying credit payments on time and possessing a good credit history. Also, qualifying applicants must purchase a property that meets all program criteria (i.e. the property needs to be in an area that the USDA considers eligible). Once the house is purchased, buyers will have to personally occupy the dwelling as their primary residence.
The overall goal** of the USDA Loan is to provide lenders with assistance that will enable them to help low and moderate income rural families achieve the dream of homeownership. By providing an affordable mortgage option, the USDA hopes to create thriving communities with a high quality of life in rural areas.
If you’re ready to move somewhere where you can see the stars instead of city lights, contact one of our loan offices close to you to get started on your USDA Loan today!