A USDA loan (also called a Rural Development Loan) is a government insured home loan that allows you purchase a home with NO Money Down. USDA Loans offer 100% financing to qualified buyers, and allow for all closing costs to be either paid for by the seller or financed into the loan. USDA offers some the lowest rates of any loan, and you will always have a fixed interest rate.
Am I Eligible for a USDA Loan?
USDA Loan Eligibility will be determined by three factors:
Credit Worthiness: When an underwriter reviews your credit history on a USDA Loan the major thing they will be looking for is a history of paying your bills in a timely fashion. If you have had blemishes in the past they may be overlooked as long as you have reestablished your credit over the past 12 months. Generally, any open judgments or collections will need to be paid off before you close on your new home.
USDA Loan Income Restrictions: You will need to be able to document your income on a USDA Loan. USDA will generally want to see a two year history of employment or consistent income. Exceptions on the two year requirement can be made for applicants such as students. On a USDA Loan Assets are not required for approval, but can help overcome any possible blemishes on credit.
Where you Live: In order to qualify for a USDA Loan your home must be located in a designated USDA rural area. You can check the USDA eligibility of your county. It might surprise you just how many areas of the United States do qualify for these no money down home loans. The goal of the USDA loan program is to help our nation’s smaller, rural communities thrive by making land and property more affordable.
What are the Benefits of a USDA Loan?
The USDA Rural Development Loan program is one of the last true No Money Down Loan options on the market. Backed by the United States Department of Agricultures (USDA), these safe and secure loans offer:
100% Financing – No Down Payment!
Flexible Credit Guideline
Fixed Interest Rates
No Maximum Loan Amount
New and Existing Homes are Eligible
In short, affordability – This is what USDA Loans through the experts at the USDA Loan Agency have to offer. With the help of these affordably priced, fixed interest loans, Americans all across this great nation are realizing their dreams of home ownership.
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