*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
USDA Loans (United States Department of Agriculture Loans) are reserved for those who are looking to move to an eligible rural area. Below are a few facts and requirements that are important to keep in mind when looking to do a USDA loan.
USDA loans are overseen by the US Department of Agriculture. They are considered government loans that can be used by borrowers looking to move to a USDA defined eligible rural area. According to the USDA website, these borrowers must meet specific household income guidelines in order to qualify for a USDA loan. It is also a requirement that borrower's use this home as their primary residence.
There is no requirement for a down payment on a USDA loan.
USDA loans don't require "mortgage insurance", but they do require a "guarantee fee" which works similarly. This will usually be charged in an upfront and annual fee.
Because it is a government backed loan, USDA loans usually have better interest rates than traditional loans.
The USDA doesn't have a minimum credit score requirement, but, lenders won't usually lend on USDA loans without the borrowers having at least a 640 credit score.
If you're looking to purchase a home in a rural area, give me a call and lets see if we can get you qualified for a USDA loan.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
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