It’s a tough financial market and we all know it. In fact, in the last two years, it’s been downright difficult to get any type of loan from banks. They are not willing to lend money to people with good credit and the interest rates are atrocious. This is understandable considering the horrible economic downturn a few years back but what if you really want to buy a home and you can afford it? The bank will not loan you money but the USDA will. For small families who are willing to relocate to special areas, the United States Department of Agriculture has a special USDA loan program for eligible families.
This is how it works.
The USDA Loan An USDA loan or a rural development loan is a government insurance loan. This loan is designed to help small families or large companies to buy a home or a premise quickly in certain areas. As a result, the loans have 100% financing for eligible homeowners with no down payment and an easy repayment process. The buyers and sellers are also free of closing costs and these costs are added to the loan amount. The interest rates on the USDA loans are the best in the market and the interest rates are fixed to protect the buyer. Other attractive features offered the USDA loans include:
1. The home has to be purchased in the area selected by the USDA. The home you have selected should also meet the 4150.2 and 4905.1 HUD handbook guidelines. Each state has a specifically delegated area with homes and premises that are eligible for the loan. You will have to check the USDA Loans State Specific Page to learn more. 2. Applicants for the loan should have an income of 115% of the current average income for the area they are interested to buy. The average income ranges are also listed state-wise on the USDA website 3. The home loans are for fixed for a 30-day period. 4. Interest rates are lower than the market rate and they are fixed which means that homeowners are paying far lower monthly payments than the market rate. 5. A good or average credit score of about 620 is required to be eligible for the loan. Please note that even customers who have a bankruptcy in their history can apply for the loan provided the bankruptcy is two or more years old. 6. You may not be eligible if you have a very low income. However, if you have a lower income, you can easily get co-borrowers or co-applicants on the loan to improve your credit rating and increase your chances of getting a loan. 7. You cannot own another home within commuting distance of the USDA-approved home.
USDA Home Loans are very affordable and they are the best way to own your home quickly. No other loan on the market offers the same 100% loan financing and the affordable interest rates. If you fulfill the eligibility requirements, you could easily own a beautiful home in a wonderful area in a single year.