USDA Home Loans are backed by the US Department of Agriculture. Since USDA Loans are insured by the government and are for the purpose of improving home ownership in rural areas no down payment is required. USDA Rural Development loans are a good for most borrowers looking to purchase a home outside of major metropolitan areas.
In order to qualify for a USDA Rural Development Loan your income must be not exceed 115% of the media income limit set by the USDA for your county and family size. The USDA Loan requires that the property by located in a rural area. Most towns with a population less than 20,000 are eligible. A credit score of 620 or greater is required to obtain a USDA Home Loan. USDA backed mortgages are for owner occupied properties only.
USDA Home Loans allow you to purchase a home with no money down! Unlike most other loan types, USDS Loans do not require mortgage insurance, making them more affordable than FHA or Conventional Loans. If negotiated into the purchase contract, the sellers are allowed to contribute towards the buyers closing cost, allowing the buyer to have little to no money out-of pocket.
USDA Home Loans have the standard closing cost associated with any home loan and require a 3.5% guarantee fee. This fee can be rolled into the loan making it easier for you to qualify if no money out-of-pocket.
USDA Home Loans require no down payment. – usda home loans A USDA Home Loan must be used to purchase a primary residence in a rural area. – usda home loans USDA Loans require a 3.5% Guarantee Fee that can be rolled into the loan up to 102% of the appraised value of the property. – usda home loans A USDA Loan restricts its use to borrowers that earn less than 115% of the median income for the county. – usda home loans USDA Loans require a minimum credit score of 620 to obtain financing. – usda home loans
Applying for a home loan is a complex and lengthy process. If you aren’t sure what size of loan you can qualify for, using a USDA loan calculator can give you realistic expectations going into the process. Our USDA Loan Calculator gives you your typical monthly payments through the duration of the loan. It also tells you how much interest you can expect to pay and full monthly and yearly amortization schedules. The attached graph gives you a visual representation of your loan’s expected progress.
Our USDA loan calculator takes your data and applies mathematical equations commonly used by financial institutions all over the United States. While this will give you a fair estimate of how much you’ll pay and the rate you’ll gain equity, other factors may change the results. Factors such as USDA eligibility, property tax rates in your community and interest rates can all affect the final results. To get a specific quote, it’s helpful to speak with a USDA specialist who can provide you with more detailed information specific to your state and county.
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Our goal at Security America is to match the best product to the needs of our clients. In addition to offering USDA Home Loans, we offer USDA Home Loans. Contact us today to discuss your loan options and determine which loan is best for you!