USDA mortgage loan can amaze you. To avail the benefits under this plan, one does not have to live in any farmhouse. This program focuses on rural or countryside areas and provides 100% financing by providing loan assurances to creditors.
This mortgage program assures home loans for countryside properties on meeting specific income limits and a few other criteria. Let us know more about the features and benefits of USDA home loan plans in detail.
Features of USDA home loan
USDA is an assured Rural Housing Loans. This loan offers safe, and secure sanitary homes for families that belong to low to moderate-income earning groups. USDA mortgage loan is designed to assist families in buying renovating or refinancing their home in rural areas. No down payment is needed that distinguishes these loans from conventional home loans that generally need a minimum of 5 percent upfront payment.
BlackHawk Bank is a reputed bank that helps its clients begin their home possession journey. A knowledgeable home loan professional will take you through the USDA home loans procedure and provide the solution to your queries.
USDA Loan Eligibility
Basic eligibility criteria to secure these loans are:
- The property has to locate in a rural region and defined under the USDA regulation.
- The property should be owner-occupied.
- The property should be lesser than 2,000 sq. ft. in size
- You must fulfill the income restrictions where the property is located.
- The property owner has to be a citizen of the U.S, a non-citizen national or a qualified alien.
- The monthly property payment must include 29 % or less of the monthly income of borrower that includes loan principal, interest, property taxes and insurance of homeowner.
- The borrower must show an expectable income history of a minimum of 24 months.
- The borrower must be safe, and clean housing.
Benefits of a USDA Loan
These are some of the advantages of a USDA loan that makes it appealing among rural people:
- 100% financing option
- 1% Interest rate
- Flexible credit guidelines that includes acceptance of less than required credit
- Facility to use non-conventional credit references like rent payment history and utility.
USDA loans are made to boost development and financial growth in the rural sector. Earlier this loan was made primarily for farmers, now it is also offered to people who plan to purchase or refinance a home in any qualifying rural area. This information will assist people who want to buy or renovate land in rural region.