USDA Rural Development Home Loans
If you’re dreaming of owning a home in a picturesque rural area, the United States Department of Agriculture (USDA) has a loan program tailored just for you. Designed to help families achieve homeownership in rural communities, USDA rural development home loans offer a host of benefits that make them an excellent choice for those looking to settle outside the more urban areas.
These loans are specifically designed to improve the quality of life in rural areas by promoting homeownership, but many of the areas eligible for USDA house loans are not as rural as you might think! USDA loans can also be layered and combined with other programs like down payment assistance. Read on to explore the advantages of this loan program to determine if it may be a good fit for your new home purchase.
Advantages of USDA Rural Development Home Loans
No Down Payment Required
USDA house loans allow for 100% financing, meaning borrowers can purchase a home without needing to make a down payment. They will be responsible for closing costs and prepaids unless the seller pays them.
Low Interest Rates
The interest rates on USDA house loans are typically lower than those of other loans, making homeownership more affordable.
Long Repayment Terms
USDA loans offer repayment terms of 30 years and are fixed rate loans. No adjustables.
Flexible Credit Requirements
The USDA is more lenient with credit requirements compared to traditional lenders in some aspects such as length of being on the job. In fact, borrowers with less-than-perfect credit may still qualify.
Closing Cost Assistance
Closing costs can be paid by the seller or a gift received from a family member! This reduces upfront costs from the buyer.
Low Private Mortgage Insurance (PMI)…
Very low MI factor.
Rural Development Focus
These loans are intended to help improve the quality of life in rural areas by promoting homeownership, which can contribute to the overall economic and social well-being of these communities. Many of the areas that USDA are valid in are really not rural anymore!
