Exploring the many options you have available for financing a home might make the difference in renting for the rest of your life or becoming a proud homeowner.
What is a USDA Home Loan?
A USDA (United States Department of Agriculture) loan is a 100% insured government loan offered to individuals in rural areas. USDA loans are used to help low income individuals become homeowners.
Through the USDA’s Guaranteed Rural Housing Loan Program, individuals with low to moderate income levels may qualify for home mortgages without a down payment. The funds may be used to build, repair, relocate or renovate property.
You can also finance land/home packages, manufactured homes and land up to five acres. Loan terms are 30 years and the interest rate is set by the lender and there is no down payment.
Do You Qualify For A USDA Loan?
According to the guidelines on USDA Rural Development website, applicants’ income cannot exceed 115% of the median income for the area. In Tulsa, Oklahoma, for example, HUD Metro FMR Area, RHS Low Income is $46,100 (1-4 Persons) to $60,850 (5 to 8 Persons) and RHS Moderate Income for a guaranteed loan is $73,600 (1-4 Persons) to $97,150 (5-8 Persons).
Other requirements for qualifying for a USDA loan include: Families must have a reasonable credit history, the ability to make the mortgage payments (taxes and insurance), and must not have adequate housing. While qualifying for a USDA loan may not be as stringent as a conventional loan, you do have to meet certain criteria in order to be eligible for this program.
What Type of Home Can You Purchase?
Under the USDA Guaranteed Loan Program, the housing must meet HUD building codes. Manufactured housing must meet HUD Manufactured Housing Construction and Safety Standards.
A quick view of the USDA website can show you what homes are available in your area under this loan program and your agent may have more properties for you to see. Property can range from single family homes to multi-family homes and even farms and/or ranches.
Properties for sale can include government owned real estate, lots, buildings, and even potential foreclosure properties.
If you live in the Oklahoma area and would like to own a home, but thought you did not meet the income requirements perhaps you should reconsider. The first step should be finding out do you qualify for a USDA home loan Tulsa OK.
Because there are strict guidelines that must be adhered to, it is important that you find a knowledgeable agent and lender in your area who can guide you through this process.
Exploring your loan financing options ahead of time might turn your dreams of own a home in the rural Oklahoma area into a reality.
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Article Added on Friday, October 30, 2009
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