10 Reasons To Consider A USDA Mortgage [mortgagerefinance-101.blogspot.com]
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mortgagerefinance-101.blogspot.com Differences Between FHA , VA, CONVENTIONAL , USDA Mortgage Loans
Established in 1949, the USDA Rural Housing Loans program of the US Department of Agriculture has helped more than 2.7 million rural citizens the take advantage of the opportunity of to own a home. For over half a century, the program has formed partnerships with carefully selected lenders in each state. In turn, the lenders provide the loans with a repayment guarantee from the USDA, in case the loan should ever default. The USDA backing means that loans are less risky to mortgage lenders who can proceed with confidence and offer home financing to those individuals who meet the USDA Rural Development guidelines.
For those who qualify a USDA mortgage can offer many advantages over other home loan programs available in the marketplace. Here are 10 reasons to consider a USDA Rural Housing Loan:
1.
In 2009, changes were made by the USDA in conjunction with the American Recovery and Reinvestment Act that make even more potential homebuyers eligible for this type of loan.2. USDA Rural Housing loans are not just for farmers. Individuals wishing to buy a home outside of a metropolitan area may qualify for this type of loan program.
3. This is one of few zero money down mortgage programs available to borrowers outside of the military. The 100% financing option is one of the most attractive features of a USDA mortgage, as it can be tough for first time homebuyers to come up with a five, ten, or even twenty percent down payment when purchasing a home.
4.
Borrowers are not required to take out private mortgage insurance, and the required 2& guarantee fee can be financed into the loan.5. Families with lower incomes and those with less than perfect credit may be able to qualify. In fact, this program is specifically for those with lower incomes, and borrowers who make above a certain amount (varies by county) may not qualify.
6. Secure, 30-year fixed rate loans, make for lower monthly payments that are geared towards ensuring the successful repayment by borrowers.
7. USDA mortgages are intended to finance "modest dwellings", which can help buyers avoid purchasing a home that is above their means.
8. Less restrictive guidelines mean that applicants can qualify with fewer cash reserves when compared to many other programs.
9. Seller paid closing costs are permitted, up to a certain percentage of the loan amount. This can enable a home purchase with few up front out of pocket expenses.
10. Homes that are "fixer-uppers" may qualify for extra funds for rehabilitation.
It is important to understand that not everyone will qualify for a USDA mortgage. The property must be located in an area that is designated as "rural" by the USDA, and the loan amount must fall within allowable limits (varies by county.) The borrower must meet the guidelines for eligibility and be able to show based on their income and credit history that they will be able to repay the loan as agreed. For those who qualify a USDA Rural Housing loan can help make cost effective home ownership a reality.
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