Key Benefits Of USDA Home Loans

Key Benefits Of USDA Home Loans

The United States Department of Agriculture (USDA) has introduced USDA home loan program to benefit people planning to buy or construct homes in rural areas. Lenders approved by the USDA offer these loans. These loans are offered to buy a resale home, buy a new home, construct a house, and for the renovation of an already owned home.

Some Of The Benefits Of USDA Home Loans:

No Down Payment

This is one of the few home loan programs that offer you 100-percent financing. This means it is not mandatory to have a down payment for buying a home under this loan scheme. You can get up to 102-percent finance for the appraised value of the home.

No Ceiling On The Value Of Home

According to the USDA loan guidelines; there is no maximum limit on the value of home that a borrower can purchase under this home loan scheme. The repaying capacity of a borrower is checked while deciding the amount of loan he is eligible for.

Lowest Interest Rates

Lenders providing USDA loans offer lowest fixed interest rates on 30-year loans. As these loans are guaranteed by the United States Department of Agriculture, lenders have minimal risks and can afford to offer lowest interest rate home loans. These loans are quite inexpensive as compared to FHA and conventional loans.

No Need Of Mortgage Insurance

For getting this loan, you do not need to buy expensive mortgage insurance that otherwise adds substantially to monthly mortgage installments.

Flexible Eligibility Requirements

To qualify for this home loan, you need to have at least a FICO credit score of 620. However, this limit is flexible and even people with bad credit score sometimes qualify for loans.

No Prepayment Penalty

Another useful feature of this loan is that you do not have to pay prepayment penalty in case you intend to repay your loan before time.

Includes Cost Of Repairs

If you want to buy a home that needs to be renovated, you do not have to worry about arranging funds for repairs. You can get the cost of repairs included in your home loan.

Eligibility Criteria For US Housing Loan

To Avail Of This Home Loan, You Should Fulfill The Following Conditions.

1. You should be a US citizen.
2. You should purchase property in an open country or an area having population less than 10,000. In a few cases, properties at outskirts of cities and towns also qualify for this      loan.  You should consult the rural department for more details in this regard.
3. The home should be used as a primary residence.
4. You should not already own a home in the same area.
5. You should fulfill income requirements as per the eligibility requirements of the state of Indiana.

If you are planning to own a home in a rural area, this is a fantastic opportunity for you. Not only the interest rate of this home loan offer is the lowest, but also the eligibility conditions are also quite flexible. The USDA has come up with this scheme to help financially weak people own homes. Also it is a one step forward toward developing the rural areas.

Jennifer Silva

DISCLAIMER: Neither Indiana USDA Mortgages ( nor Luminate Home Loans is affiliated with any government agencies, including the USDA.

Submit a Comment