If you are on a hunt for a mortgage loan that does not burn a hole in your pocket, you should consider the one from USDA. USDA home loans are popular for so many good reasons.
First on the long list of benefits is this — it is designed so that deserving low- and moderate-income families can have a roof over their heads. The USDA provides a great opportunity to qualified borrowers a chance to own clean, safe, modest and adequate dwellings.
It is possible to get 100 percent financing through the USDA’s Single Family Housing Direct Loan Program. This eliminates the need to come up with a down payment to purchase a home.
The loan can only be used to purchase properties that are located in eligible addresses. If you think that your home or the property you are planning to buy won’t qualify because it not in a rural community, you can be wrong. The USDA’s technical definition of a ‘Rural Area’ may shock you when you find out your address is eligible. To see for yourself, check the Property Eligibility Map.Find the best mortgage rates, click here.
Clean, Safe and Modest Home Improve Quality of Life
Applicants must meet a set of requirements to be eligible for USDA loan. It is important that such requirements are factored in by applicants before they apply for the program.
One thing that the USDA RD will look at is the borrower’s adjusted income. Because the target recipient of the USDA loans are low-to moderate-income individuals, it should not exceed the area’s applicable low-income limit. It is also important that the borrowers demonstrate the ability to repay the loan.
An applicant must not currently own a decent, safe and sanitary housing. To make sure that what they are buying are modest homes, the property’s market value must not exceed the area’s loan limit. Properties with a swimming pool cannot be financed through this program. In general, the property cannot be bigger than 2,000 square feet.Connect with a lender, click here.
If you’ve used the USDA Home Loan Eligibility in the past, is it possible to qualify for it for the second time?
Technically speaking, the USDA home loan eligibility can only be used once. So if you are planning to buy a second home, there is no way you can fund it through the program. USDA loan can only be used for the purchase of primary residences; a summer home isn’t one.
However, if you sell your USDA-financed dwelling and pay your USDA home loan completely, you can get your next home with a USDA loan.
There are, however, a few exemptions. Under these circumstances, you can buy another property using a USDA loan without selling your first home.
If your work requires you to travel more than 50 miles from your residence.
This can be too far a distance to travel every single day. You may use take another USDA loan to purchase another home without having to sell the existing one.
The dwelling is too small or your growing family.
The USDA wants you to have a home that’s safe for every member of the household. Having too many people living in such a small space will deem a property is adequate for living. To accommodate everyone, you make purchase another home through the USDA financing.
What do you do with your existing home? You can have it rented out. Considering that the financing program is designed for low- to moderate- income borrowers, it can be a handful to pay two mortgages at the same time. The rental income can help cover the mortgage payments.
These are some of the opportunities the USDA RD presents to eligible homeowners and home buyers.
Everybody deserves a good place to live in. The USDA takes a good look at several factors to make sure that they are providing this opportunity to people who deserve it. An affordable home loan like the USDA’s provides a path for many families to have sanitary, safe and decent homes. Families with decent dwelling make a thriving community.Click to See the Latest Mortgage Rates»