Have you been looking to purchase a whole new home in a
rural area, but don't know how to begin when looking for help with a mortgage
company? Very good news! Home Town Mortgage is here for you with an awesome
loan program made just for you and your requires. The U. S. Department of
Agriculture (USDA) has a loan guarantee program that will assist you obtain a
home loan. With the help of the USD loan program you could be living in your
new home with little to zero money down.
A rural
development loan gives borrowers that qualify enable you to get a home loan
with easier qualifications and loans options that other conventional loan can't
give. One thing to be aware of is that USDA Rural Development does not actually
pay for the loan. USDA Rural Development has partnered with lenders to all
states who will loan the money with the guarantee through the USDA of repayment
if the loan should ever default. This gives lenders the ability and confidence
to provide qualified borrowers with a mortgage.
ARE YOU AN ELIGIBLE BORROWER?
An individual or family planning to occupy a home in a
rural area as their primary residence can qualify for a USDA home loan. When
applying for the USDA Rural Development home loan a borrower must provide
sufficient income verification and also a credit history proving their ability
and willingness to meet up with repayment obligations. A lender will also
consider a borrower's regular housing cost (mortgage principal and interest,
property income taxes and insurance), these housing cost must meet a unique percentage
of your gross monthly income (29% rate). A borrower's credit background will be
considered also. Most lenders will require a FICO score of at the least 620 to
qualify for a USDA home loan. A borrower's income has to be enough to pay their
housing cost plus all more monthly debt (41% ratio). USDA Rural Development is
equipped with income limits which vary between states and the areas within that
state.
BENEFITS OF A USDA RURAL DEVELOPMENT HOUSE LOAN
There is no down payment required. A borrower that
qualifies for a mortgage with the USDA program has the options to pay nothing
beyond pocket for a down payment. This means that the borrower will be able to
finance up to 100% of the appraised value of your home.
There are no Mortgage Insurance requirements with a USDA
house loan. This gives the borrowers a chance to put a higher price towards to
the mortgage payment each month instead of pay expensive Mortgage Insurance
charges.
There are competitive 30 year fixed interest rates. As a
result of guarantee of the U. S. Government, a lender will be able to provide
the lowest interest rates to qualified borrowers.
The usda
mortgage program doesn't need a maximum purchase limit. However, the lender
will determine a maximum loan amount using the applicant ability to repay the
loan.
WHAT IS A new RURAL AREA?
Rural areas typically include areas outside of the city
limits however there are circumstances where some towns and cities have been
deemed rural areas. Generally rural areas include country and places which has
a population of 10, 000 or less.
