What is USDA Loan?
USDA loan is a mortgage that is supported by the US Department of Agriculture. People thought that this loan is meant only for those who’re related to agriculture like farmers. However, the truth is that it is made for only those properties that are primarily used for staying and not for investment or renting purpose. This loan is applicable for all those who’re residing either in rural or suburban areas, as long as they qualify for certain parameters.
Who Can Apply for USDA loan?
This loan program is made for those who don’t have much finances or options to opt for. The loan repayment method is convenient and low enough to manage by any income group. Many people are eligible for this loan program due to its flexibility. To fall under the eligibility criteria, one should fall in these parameters –
- The property needs to be the first residence of the individual and they cannot use it for investment or rental purposes.
- The family applying for this loan should not have safe, sanitary, and decent housing in previous records.
- They’re unable to get home loans from any other traditional sources like banks and other financial institutions.
- They stay in a place where they have to adjust to the income they have.
USDA loans are a kind of loan that provides various benefits. Spring Homes located in Colorado Springs, Colorado, have real depth knowledge of real estate. This business was started in 1997 by Jennifer and Joe Boylan. Today, they are considered to have the best website that consists of the latest technology and marketing strategies. If you want to buy or sell a home in Colorado Springs, you know whom to contact.
Benefits of USDA loan
- This loan can be provided without any down payment as long as you fall into the above-mentioned criteria. This means even without 0% down payment, you can still get a USDA loan.
- Generally, this loan is given to first time buyers, but those who want to buy a home again can also apply for this loan.
- The loan is given at the lowest interest rate with tenure of 15 years or 30 years to the maximum. Unless the buyer and seller don’t come to a mutual consent with the interest rate, the loan applications aren’t signed.
There are various types of USDA loans available in the market. Above all, the person should also fall into the eligibility criteria to apply for the loan. We have already mentioned the property requirement.
- You must have US citizenship.
- Certain income requirements are needed and you will have to show stable income for the last two years.
- Credit score plays an important role and still, if you have a score of less than 680, you can qualify for the above loan.
- If you have a score of 680 or above then your repayment schedule will not be more than 29% of your total incomes. Otherwise, you need to have a debt ratio of 41% if not a credit score of 680.
If you want to know more facts about the USDA Mortgage, then you can check the online site of MadisonMortgageGuys.com. It is a mortgage website that provides information on various mortgage programs, rates, and real estate tips. They have experience of more than 17 years which makes them quite skillful in this field.
They definitely provide information, but they also help their customers by connecting them directly with the Loan Officer in their state. Their main motive is to help every customer with a good amount of mortgage loan in the simplest way.
Owning a home is everyone’s dream. People pay a huge amount of rental and still feel insecure about being thrown out of the house anytime. USDA loans are provided to ensure that every US citizen has at least one shelter of their own.