bharatbhasha.com
Free Articles  >>  Business And Finance >> 

USDA Mortgage Loans A Guide for First Time Home Buyers





USDA mortgage loans are offered to rural property buyers by the United States Department of Agriculture. Such a mortgage loan can be used by first time home buyers to raise the funds to buy property. The USDA rural housing loan is a 100% financing loan which means that you can finance the full amount of the property value. It requires no down payment either. This makes it perfect for first-time home buyers who don’t have a lot of money saved up.

How to Apply for USDA Mortgage Loans

If you’re planning to apply for this guaranteed housing loan program, you must contact a local mortgage lender. An USDA sponsored program might seem like something targeted to ranchers and farmers. But in reality, your occupation has nothing to do with the matter. Eligibility for the loan is based solely on income and location of the property.

What Makes You Eligible for USDA Rural Housing Loan

Geographic Location

Property location is the most important factor for qualifying for USDA mortgage loans. It has to be located within a USDA eligible area. While the idea of a rural area brings a specific image to mind, 97% of USA is actually eligible. So, there is a high chance that the property you want might be eligible for financing. Go through USDA maps to browse locations or pinpoint a specific address. You can also ask an USDA loan officer whether your property is located within an eligible area.

Income Limit

The total income of your family needs to be 115% of your region’s median income or less. As of 2018, the income limit for 1-4-member families is $82,700 and the income limit for 5+ member families is $109,150. Keep in mind that your entire household income will be counted by the loan lender. This would include for example, a working teenager who is not on the loan.

Credit Standard

To qualify for USDA rural housing loan, your credit score has to be 640 or above. You could also qualify by proving that your credit score was affected by things outside your control. It could be a temporary situation or due to medical emergencies.

Other Requirements

• The borrower needs to be an US citizen, an US non-citizen national or a qualified alien.

• You would have to submit a 24-month history of dependable employment and show adequate income.

• Being a first-time home buyer is not compulsory. But you cannot own any adequate, livable housing close to the property you’re planning to buy.
• You must occupy this property as your primary residence.

Why Should You Opt for USDA Rural Housing Loan?

USDA mortgage loans have numerous advantages for first time home owners in rural or suburban areas.

• It is a zero-down loan, so you need to make absolutely no down payment.

• You can get financing for 100% of the property value.

• Mortgage rates are extremely low because of the government backing on the loans. This makes it safer and cheaper for mortgage companies and private banks to lend. The mortgage insurance premium is as low as 0.30%

• USDA offers 15 years and 30 years fixed rate loans. Adjustable rate loans are not available
.
• Affordable homeownership promotes settlement in less densely populated parts of the USA. This in turn, promotes better quality of life in rural areas and creates prosperous communities. We hope this serves as a comprehensive guide for first time home buyers looking for a primary residence.

About Author Vikram kumar :

With the help of https://www.usdahomeloans.com/ USDA Mortgage Loans like the https://www.usdahomeloans.com/usda-rural-development-loans/ USDA Rural Housing Loan , low and moderate-income households can buy property.


Article Source: http://www.bharatbhasha.com
Article Url: http://www.bharatbhasha.com/finance-and-business.php/493257


Article Added on Friday, November 9, 2018
LD
Other Articles by Vikram kumar

All you need to know about the USDA rural housing loan
The loan programs which the USDA( United States Department of Agriculture) offer are made keeping in mind to improve the quality of economy as well the lives of the people living in the rural parts of America. It has not only helped them to buy their dream homes but also improved their living conditions. If you are a first time buyer with a moderate income then the USDA mortgage loans gives you the opportunity to buy homes of your own choice. Unlike other financial companies, which demand a...

Rural Home Loans from USDA gives you easy access to the home of your dreams
If you have been eyeing a home in the rural sides of the States and wish to make it your residence, there is good news for you. The USDA rural home loans help people to gain access to their dream homes in the rural sides of the country. USDA provides flexible home loans without any down payment and at affordable interest rates to people looking for homes. It is true that purchasing houses and getting home loans is a very difficult task in today’s world. It is also difficult to find a suitable...

The USDA loan requirement plan brings you the cost effective loan program
The forefront of developing rural America, USDA or the United States Department of Agriculture was established in the year 1935. The USDA rural development was established by President Franklin D. Roosevelt when he signed the Executive Order7027. The USDA Rural Development loan plan was made in order to help the families to relocate and issue emergency loans to the farmers. They used to administer the USDA home loan program for rural housing. What is USDA loan program? USDA loan program...

Get a detailed knowledge about the USDA Lenders and USDA Rural Housing Loan schemes
The forefront of developing rural America, USDA or the United States Department of Agriculture was established in the year 1935. Initially, USDA was known as the Resettlement Administration and on April 30, President Franklin D. Roosevelt signed the Executive Order 7027. The main aim of USDA was to issue emergency loans to farmers and restore soil to eroded areas. In the year 1994, the USDA Rural development department was created whose work was to administer the USDA home loan program for...

Rural Home Loans Knowhow
A lot of people feel more at home when they are surrounded by nature. If you’re planning to buy a house in rural or suburban areas, then you’ve come to the right place. We have all the information you need to know about rural home loans like the rural development loan. What is a USDA Rural Development Loan? The United States Department of Agriculture is offering a 100% financing rural home loan called Rural Development (RD) loan. It reduces the costs for people planning to settle down...

USDA Mortgage loans are the easiest rural housing loan
In this fast progressing era – one finds it very difficult to finance their house. The home loans and their terms have become so difficult to track that people are finding it extremely hard to find an ideal housing loan partner. Not only is it difficult to raise money for the down payment but the question of getting a long-term home loan is out of question specially for the people who don’t have a high credit score. The market is such that anyone who doesn’t reach an ideal credit...

Buy your dream house now with easy zero down home loans
Buying a dream house may remain a dream for many people throughout their lives because of lack of capital at hands. It is always not possible to save enough for buying a dream house to live in with your family. But with easy home loans available for people, many people have been able to make their dreams see the light of the day and have shifted to beautiful houses to create the perfect home for their families. USDA loan is a loan that is guaranteed by the Department of Agriculture of the...

Lower credit score Rely on USDA Home Loan and solve the issue
When you’re thinking of home loan for buying a house, your credit score has an important role to plays. The loan type, appropriate for you, depends on how much credit score you have. You may find several categories of loans in the present market. However, now, the highly affordable option to the borrowers is USDA Mortgage Loans. It is also very easy to get qualified for this loan. USDA has presented the most flexible guidelines for the rural house development loan. Although you may not find...

Why should you consider getting a rural housing loan
Do the green pastures of the countryside feel more at home than the stony pavements and concrete buildings? Does the countryside beckon you every now and then? Do you have a plan of settling down later in life far away from the crowd and traffic? Then the USDA Rural Housing Loan is the right solution for you. The Department of Agriculture in the United States has been issuing easily available rural home loans to people who would like to have a home in such areas. If a candidate fulfils the USDA...

The best rural home loans for aspiring homeowners
One of the best options individuals have for getting housing loans in the US is through the USDA. The USDA has one of the best rural housing services as a program. They offer some of the best loans to help improve community facilities and housing in rural areas. You can find a number of different loan options for single-family and multi-family housing options. They have some of the best options to help individuals ensure that rural communities are boosted in the rural communities. They have...

Click here to see More Articles by Vikram Kumar
Publishers / Webmasters
Article ID: 493257
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:


192 Users Online!!
Related Articles:
Latest Articles:
 
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts
Aging


Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of bharatbhasha.com and/or its owners.


Copyright © AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Private Label Hosting Provided By AwareIndia







Company IDS