The Benefits of USDA Loans [mortgageloan-processor.blogspot.com]
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The federal agency announced yesterday that the interest rates for the loans will drop from the current rate, 3.75 percent, to 2.25 percent. The USDA also amended the disaster designation process, which will result in a 40 percent reduced processing ... USDA lowers interest rates on drought relief loans
The USDA Rural Development home loan is primarily designed to help low-income individuals or households to purchase homes in rural areas. The USDA does not provide the funds but rather provides repayment guaranty to lenders.
What are the benefits of this program?
Down payment is not required. Qualified borrowers have the option of paying no down payment, which means borrowers can finance up to 100 percent of the appraised home value. With the current markets considered to be "declining markets," the 100 percent financing is truly one of a kind.
Down payment is not required. Qualified borrowers have the option of paying no down payment, which means borrowers can finance up to 100 percent of the appraised home value. With the current markets considered to be "declining markets," the 100 percent financing is truly one of a kind. There are no mortgage insurance payments. Borrowers are not required to pay expensive mortgage insurance premiums, which means more money can be used to pay the monthly mortgage payment. The thirty-year fixed interest rates are competitive. The USDA loan program is insured by the government. Any payment delinquencies made by the borrower are going to be shouldered by the government. Because of this, lenders are willing to offer the best loan deals for qualified borrowers, which include giving the lowest interest rates. Credit guidelines are flexible. Borrowers are required to provide a credit history report. However, credit guidelines are not strict. If a borrower has a bad credit, it doesn't mean he will no longer have a chance to qualify for a loan. There is no maximum purchase limit. However, the maximum loan amount is still to be determined by the lender based on the applicant's ability to pay.Â
To be eligible for this program, you must meet the income limits and credit requirements set by the USDA. Your credit history does not need to be perfect but must show willingness to pay the monthly obligations. Also, the home you are planning to purchase must be located in a USDA eligible rural area.
If you have tried applying for other loan programs with little or no success, you might consider applying for a USDA loan. Many people have already benefited from this program. You can be one of them.
References:
USDA Loans:
http://www.usdaloans.com/benefits.html
Mortgage
http://mortgage.lovetoknow.com/USDA_Home_LoansÂ
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