What is a USDA Loan – Do You Qualify

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A USDA loan (also called a Rural Development Loan) is a government insured home loan that allows you purchase a home with NO Money Down. USDA Home Loans offer 100% financing to qualified buyers, and allow for all closing costs to be either paid for by the seller or financed into the loan. USDA offers some the lowest rates of any loan, and you will always have a fixed interest rate.

To learn more about Rural Development Loan qualifications and eligibility, fill out a USDA Loan Application.  Or if you need more information, visit our Rural Development Loan Resource Section for quick answers to common questions, or call the home loan experts at 1-866-854-4242.

Am I Eligible for a USDA Loan?

USDA Loan Eligibility will be determined by three factors:

Credit Worthiness: When an underwriter reviews your credit history on a USDA Loan the major thing they will be looking for is a history of paying your bills in a timely fashion. If you have had blemishes in the past they may be overlooked as long as you have reestablished your credit over the past 12 months. Generally, any open judgments or collections will need to be paid off before you close on your new home.

USDA Loan Income Restrictions: You will need to be able to document your income on a USDA Loan. USDA will generally want to see a two year history of employment or consistent income. Exceptions on the two year requirement can be made for applicants such as students. On a USDA Loan Assets are not required for approval, but can help overcome any possible blemishes on credit.

Where you Live: In order to qualify for a USDA Loan your home must be located in a designated USDA rural area. You can check the USDA eligibility of your county. It might surprise you just how many areas of the United States do qualify for these no money down home loans. The goal of the USDA loan program is to help our nation’s smaller, rural communities thrive by making land and property more affordable.

Owning Additional Property:  The USDA does not currently allow buyers to own another “adequate” property and buy another home by utilizing the USDA Loan program.  The USDA loan is designed for those buyers who do not qualify for other financing and do not have adequate housing.  However, there are certain circumstances when the USDA will allow you to keep the other home.  For example, the USDA does not view mobile (manufactured) homes as adequate property.  Other circumstances include if you have to move or if your current home is not adequately large enough for the size of your family. Learn more!

To learn more about USDA Home Loans and how to take advantage of this great program.  Visit our USDA Loan eligibility page, or call one of our certified experts at 1-866-854-4242.

Am I Eligible For A USDA Home Loan?

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There are only a few requirements you have to meet in order to be eligible for a USDA home loan. The first is that the home must be located in a designated USDA rural area. You can check the USDA eligibility of your county using the link below.

Learn more about USDA Loans:

USDA Eligibility Tester
USDA Loan Application Checklist
USDA Loan Application Guidelines
USDA Mortgage Guidelines
More information from the USDA

USDA Home Loan Credit and Income Limitations

If the home is in an eligible area, you must not exceed the current yearly USDA income limit set for your county. Finally, assuming you meet both the location and income requirements, the final requirement is an evaluation of your credit history. The USDA Rural Development loan program does not have a strict credit score guideline. Rather, it evaluates your credit history in an effort to ascertain your willingness to meet repayment obligations.

With all the numerous USDA home loan eligibility requirements, let the USDA experts at Consumer Real Estate Finance‏ be your guide.  Begin the process today by filling out an application or calling one of our certified agents at 1-866-854-4242.

Choose your state to check state income limits!

The Benefit of USDA 100% Loans and Rural Development Loans for New Home Buyers

A USDA 100% Loan, which is also called a Rural Development Loan, is a government-insured purchase loan that allows prospective home buyers to purchase a home without the need of a down payment or monies for closing costs.  There is also no maximum borrowing limit or need for mortgage insurance (PMI).  While the US Department of Agriculture does not provide the funding for the USDA 100% Loan, it does guarantee this loan allowing for low fixed interest rates.   This USDA 100% Loan is offered primarily in rural areas to qualified buyers, but small cities of up to 25,000 may also be eligible.  Eligibility is dependent upon the geographic location of the home and on the buyer’s credit and ability to repay the Rural Development Loan.  For individuals who do qualify for the Rural Development Loan, there are numerous benefits that can be immediately seen.

The first and probably most prevalent benefit received from the USDA 100% Loan is that personal cash is freed up each month.  Individuals are able to use their money for the needs and maintenance of their house and property rather than closing costs and PMI.   Money for home repairs can also be included in the Rural Development Loan.  This can be especially beneficial in the case of purchasing a ‘fixer upper’ where buyers now have access to enough funding to immediately spend on home improvements.   By adding value to the home, it increases the re-sale value and allows the homeowner to build equity faster.
Closing costs can be an unexpectedly high expense.  With the USDA 100% Loan, buyers can use gifted funds for closing costs with no restricting limit.  If buyers prefer to not make a down payment or pay closing costs upfront, these costs can be rolled into the balance of the Rural Development Loan and paid over time at a low interest rate.

Since a down payment is not necessary, the USDA 100% Loan also positions qualified buyers to upgrade to a more expensive home more quickly.  In general, the 30-year fixed rate Rural Development Loans have no pre-payment penalty which gives the home owner the power to be flexible in planning for his or her family’s future.  The buying and selling of properties lead to a positive effect on the housing market and the economy.

If you have questions or the USDA 100% Loan is of interest to you, please call us to discuss specific eligibility requirements for applicants.  We would be pleased to help you plan for a home for your family in the way that best serves your needs.

The Best Two Reasons To Hire An Independent Mortgage Lender

There are two reasons why hiring an independent mortgage lender is better than seeking financing through a bank. The employees at a borrowing firm know more about all of the different kinds of loans than do bank laborers. Most of them encourage you to seek traditional mortgage options as they are the safest choices for the bank.  An independent lending firm will not be biased towards any particular plan.

The workers at lending firms have more information about various borrowing options than do bank employees. This reality benefits consumers who qualify for plans like USDA loans and rural development loans. You can choose your best option.

Many bank employees strongly encourage borrowers to select a classic loan. Traditional contracts are secure plans for banks. Its workers will want you to enter into a deal that guarantees they will get their money.

Independent borrowing companies offer and endorse a wide range of products equally. They are not paid more or less for helping you make a particular sort of contract. You will be given substantial facts for several plans including USDA and rural development loans.

Customers will enjoy two distinct advantages when they make deals with the help of an independent mortgage lender. The laborers at those institutions have knowledge of several different types of loans. Bank employees will try to get you to enter into a contract that protects their security. A third party lender will give you all the facts about various sorts of plans including USDA and rural development loans.

Rural or Suburban Living: Which is Right for You?

Are you thinking of purchasing a home?  With so much to consider these days, making the choice of purchasing a home in an urban, a suburban or a rural area may seem overwhelming.  Our lives today are fast paced and we are constantly on the move.  Due to this high pace, it can be easy to get overwhelmed.   At the end of the day when we get a little quieter, though, often we contemplate on the type of life we would like to have and reflect on our true value system.  We focus on our family and loved ones, our friends, our health, and the importance of having a peaceful sanctuary with room to breathe and relax.

Rural and suburban homes have become a respite from cramped city living for many families in recent years.   Urban areas have been hit hard with an all-time high in crime, a deteriorating infrastructure, financially strapped school systems, and jobs sprawling further outward from traditional city centers.   For countless families, suburban living has been a logical solution, providing safe communities with many choices for practical, affordable homes.  With short commutes, an overwhelming sense of community and healthy support for community services and school programs, life in the suburbs can be relaxing and ideal for raising a family.

A safe, clean, and affordable lifestyle is also available in areas beyond the suburbs.  Rural living offer low levels of traffic and transient noise, low levels of pollution, and the charm of privately owned stores and shops.  If you crave wide open space, and relish traveling the country mile, rural living may be for you.  Land costs are often much lower in rural areas too.   Home buyers are able to enjoy room for gardening or harvesting and simply enjoying the beauty of nature.  Home prices and property taxes are lower in rural areas which in turn offer a wider variety of homes from which buyers can choose.

Both suburban and rural areas can qualify for USDA 100% Loans, also known as Rural Development Loans.  This is advantageous in that the owner does not have to provide a down payment.  Call the USDA Loan Agency at 1-866-854-4242 to learn more about USDA 100% Loans, as well as specific benefits and savings that you may able to receive by purchasing your next home.

Why You Should Buy Rather Than Rent A Home

Some individuals wonder why it is important to buy rather than rent a home. You might believe it is cheaper to pay back a landlord instead of a bank. There are distinct advantages to buying an abode with USDA loans and rural development loans.

Many people find that their mortgage bills are lower than their rent ones were. This is especially true if the home you buy is smaller or older than the structure that your rental unit was a part of. You can save money by purchasing a building.

The biggest bonus most folks enjoy after purchasing homes with USDA loans and rural development loans is freedom. Most landlords are very strict about the furnishings you are allowed to own. They might not permit you to have pets or purple painted walls. When you own an abode, you are free to have anything you want.

It is important to note that USDA loans and rural development loans are designed for folks who are new to home ownership. You can borrow money at very low rates. You might not be required to make a down payment. You can enjoy having equity in your structure. That money can be borrowed for use in making improvements on the space or for other special projects you enjoy.

A lot of folks question if it is better to buy or rent a home. You may think leasing is the least expensive option. You can enjoy the advantages of property ownership with USDA loans and rural development loans.

Am you eligible for a USDA home loan?

Apply for a USDA home loan now

 

How To Fulfill Your Dream Of Living In The Country

It is possible to own a beautiful country home with USDA loans and rural development loans. The government wants individuals to possess a piece of rural land. They have made that process a lot easier with federal mortgage programs.

A lot of people who dwell in cities want to leave the noise and dirt of those areas behind them. Urban apartments are not always the best places for families to live. They long for an expanse of country soil that is all their own. This dream can be realized with USDA loans and rural development loans.

Once reserved for farmers, the government has expanded its mortgage programs to all individuals who are willing to own property in rural areas. They do not need to get risky, interest-only contracts to enjoy inexpensive dwellings. They can be approved for safe USDA loans and rural development loans.

Federal mortgage programs are designed for families who cannot afford traditional mortgages. These plans offer very low interest rates. You might not even need a down payment. If you have good credit and can afford the low monthly bill, you can possess your own dwelling in the country. The equity you will build can later be used to start a farm, build a fence or maintain a vegetable garden.

Many folks can buy lovely rural structures with USDA loans and rural development loans. The government wants citizens to purchase land in sparsely populated areas. This process is easy for families who qualify for federal loan programs.

Am you eligible for a USDA home loan?

Apply for a USDA home loan now

How To Make The Government Pay For Your Winterization Costs

You might be eligible for having the government pay for some of your winterization efforts in your home. If you qualify for USDA loans and Rural Development loans, you are not responsible for funding all of the modifications to your dwelling. You can create a warm and cozy space for your family with those funds.

Many country dwellers are eligible for USDA loans and Rural Development loans. These folks may realize they can buy property with those funds. The homes they purchase can also be repaired with these same dollars.

When you know winter is on its way, you might dread each day that passes. You know your doors and windows let in freezing drafts. If they are in disrepair, they can leak even more breezes into your space. Rooms that have multiple outside walls grow frigid due to a lack of insulation. Your dream home can feel like an ice box to you and your loved ones. You and they will suffer needlessly.

When folks receive USDA loans and Rural Development loans, they can make their abodes comfortable for their families. Federal workers want their citizens to be warm and healthy. They may pay for replacement sashes, new insulation and secure doors and windows.

You could have the government pay you to winterize your abode.  Country home owners can use USDA loans and Rural Development loans to pay for repairs on their structures. You do not need to suffer in a cold house. Federal employees want country dwellers to have comfortable properties.

Am you eligible for a USDA home loan?

Apply for a USDA home loan now

How Your Credit Affects Your Eligibility For A Government Loan

When folks are ready to apply for USDA loans and Rural Development loans, there is often one high hurdle they need to overcome. You must usually have a credit score above 600 to be considered eligible for one of those programs. It is easy to fix a poor score in a relatively short period of time.

It is not uncommon for the average consumer to have a poor monetary rating. You might have lost your job and lived on credit for a short time. The bills from an extended hospital stay can lead a person to live on plastic cards and drop his score.

When you are recovering from a financial shortfall, the last thing you want to worry about is a house with a leaking roof. Folks who desire to get USDA loans and Rural Development loans generally need credit scores above 600. This is an easier goal to reach than you might think.

There are several small things you should do when raising a bad financial rank. You should pay bills that have been sent to collection companies. It is also advisable to pay off at least half of your total consumer debt. Folks must display their mastery at managing funds when applying for USDA loans and Rural Development loans.

Many individuals face a big issue when trying to apply for USDA loans and Rural Development loans. A poor credit score can keep you from getting one. There are a couple of relatively quick steps you can take to fix a low financial rank.

Am you eligible for a USDA home loan?

Apply for a USDA home loan now

How To Qualify For USDA Loans And Rural Development Loans

Lots of folks want to know how they can qualify for USDA loans and Rural Development loans. The most important detail is that you must have a desire to move to (or currently reside in) a remote location. It is necessary to have a stable form of income. You should also possess a credit score above 600.

Anyone can apply for USDA loans and Rural Development loans. The key detail is that you must reside (or want to live) in a rural area. That designation is officially given to locales that contain less than 20,000 individuals.

When you know you want to move to a sparsely populated county, the next step is to secure a stable form of income. This usually means a full time job or part time employment. Folks may also qualify for USDA Loans and Rural Development loans if they receive support or inheritance payments as their sole source of income.

The final determining factor on whether or not you can get money from the government is the health of your financial affairs. In order to borrow funds in this fashion, you must have a credit score above 600. That number will prove that you can be responsible with the money you will get.

Many people desire information on how to qualify for USDA loans and Rural Development loans. The critical detail is that you need to live (or desire to reside) in a rural location. You must have a reliable form of income. You should also have a credit score greater than 600.

Am you eligible for a USDA home loan?

Apply for a USDA home loan now

How The Government Can Give Your Family A Good Holiday Season

You can get federal money to help your loved ones enjoy the holidays. You do not need to chose between having a secure dwelling and paying for gifts and food. You also do not need to be famous to have a sound abode. Country dwellers can qualify for USDA loans and Rural Development loans that will accomplish the same task.

Many people who dwell in sparsely populated areas dream of having safe structures. Their roofs and foundations might be crumbling.You may have a hard time fixing those things when you have other expenses.

Lots of folks think that the only way to fix their structures is to get themselves featured on television.  Very few people are chosen to appear on programs. Individuals who get USDA loans and Rural Development loans do not need to become famous to have comfortable homes.

If you live in an area that contains less than 20,000 people, the government will pay for your home improvments. Folks receive federal funds when they meet a short list of guidelines. You could get enough money to make your dwelling feel like a new structure.

You might be able to get government funds to help your family enjoy the holidays. You do not need to sacrifice their presents or food to give them a safe dwelling. It is not necessary to appear on a television show to get a house renovation. Country dwellers can qualify for USDA loans and Rural Development loans. That money can be used to fix your foundation, roof and other trouble spots.

Are you eligible for a Rural Development loan?

Apply for a USDA home loan now