These are home loans specifically sponsored by the USDA, designed for those living in rural areas (not necessarily limited to farmers) who want to buy property or improve their houses.
Similar in many respects to FHA loans, these home loans were created as part of the Rural Development program from the United States Department of Agriculture. There are three different categories of loans. One version allows you to get a more traditional mortgage with a lower interest rate and a small-to-no down payment. The second option provides a direct home loan from the USDA to those with particularly low incomes, mortgages that typically provide extremely low interest rates. The third option offers home improvement loans that can help to repair or upgrade homes.
-The best options for rural buyers. If you live in a rural area and have an average-to-low income, these home loans provide favorable terms that you may not be able to find anywhere else.
-Benefits for those with good credit. If your credit is good, you'll find it easier to qualify for these USDA mortgages and their many benefits.Cons
-Requirements can sometimes be strict. In general, you must prove that you have a steady income (going back for a couple of years), a certain income range, and other financial factors before you can qualify for these loans.
-Loans are not always right for low-income applicants. While USDA loans can help extremely low income borrowers, adding more debt is not always the right call in these situations.
It's time to pull out the map: These USDAs are not decided by your occupation, but rather by where you live. The USDA actually provides a state-by-state map on what areas can qualify – and even if you live in or near a town, it's worth taking a look, because these boundaries can sometimes be generous. If you are in the right spot of the map, it's time to take a look at the income limits for your area. These limits vary based on location, and if your income is above a certain point (based on the number of people in your family) then you may not be able to qualify. Do your homework first, then start shopping for USDA loans!
done The selection of a third-party purchaser to acquire your information may be determined by a comparison of your registration information with available loan products. Lenders consider a number of factors when assessing your request.
done We are not a lender, loan broker or agent for any lender or loan broker. We are a marketing lead generator and FREE advertising service designed to provide you with quick and convenient access to third-party lenders.
done Your lender is legally required to provide you with loan documents, and disclose the terms of your loan, including rates and charges. Each lender has its own terms and policies. Be certain to evaluate all applicable terms and conditions of loan offers before making a decision.
done The position of each potential purchaser may also be determined by the price the purchaser is willing to pay for the information (e.g., the higher the price, the better the purchaser’s position). There is no guarantee that you will be accepted by a lender, and we do not endorse any lender.
done Third-party lenders may perform credit checks with credit reporting bureaus or obtain consumer reports, typically through alternative providers to determine credit worthiness, standing and/or credit capacity.
done To prevent unauthorized access, maintain data accuracy and ensure the correct use of information we gather online, we store your personally identifiable information in a database on secure systems. We have put in place physical, electronic and managerial security procedures to protect against the loss, misuse and alteration of the information under our control.
done Funding times may vary. Not all consumers will meet the lending criteria to qualify for a loan.