What is preventing you from getting that dream home you’ve been watching for the past month? Is your credit score low? Do you not have a down payment? A USDA loan may be the difference you’ve been needing.
What is a USDA Rural Housing Loan?
USDA loans are guaranteed by the Rural Development Wing of the Department of Agriculture. These loans target low to moderate income families in rural areas to help them achieve their home buying goals. Some of the benefits include:
- No down payment
- Lower credit score requirements
- Verified gift funds for closing costs
- Seller paid closing costs
- Income restrictions are based on where you live
- Bankruptcy doesn’t affect you after three years
- Convenient eligibility map to see if your home’s location qualifies
USDA Rural Development Loan Advantages
USDA Rural Development Loan benefits are focused on helping rural families purchase their homes. USDA and Veteran loans are the only loans to offer no down payment. This saves you thousands of dollars in upfront costs to buy a home compared to other loan programs such as FHA Loan or Conventional. Lower credit score requirements help those with less than perfect credit still purchase a new home. Closing costs are an expense we rarely think about until the process begins. USDA loans let you get a verified gift from an immediate relative, or your realtor can negotiate with the seller to pay up to 6% of your loan amount towards closing costs. This reduces the amount of money needed to close your loan.
Understanding Rural Development Loan Fees
While USDA Rural Development Loans offer numerous benefits, it’s essential to understand the associated fees. To guarantee a no down payment loan, USDA adds an upfront fee of 1% and annual mortgage insurance of 0.35%. These charges help sustain the program for future home buyers and can be wrapped into the loan, so you don’t have to pay it out of pocket.
Why Choose Us for Your Rural Development Loan?
What makes USA Mortgage the go-to lender for your USDA Rural Development Loan? We have been the #1 USDA lender in Missouri for five years straight. We’ve done this by accepting lower credit scores, keeping our rates aggressive, and offering lower lender fees than other lenders. We use this to provide a better financial experience for our clients.
A simple phone call to one of our mortgage lenders could be the difference between a no-home and a new home. We would be glad to discuss your unique situation and cater a program for your needs.
Be sure to check out our blog for more information to help you navigate the home-buying process!