USDA Loan Program

We are committed to helping you find the right Home Finance plan for your needs. We understand that every borrower has different needs, and that is why we have various types of loans here. One of them is the USDA loan program. If you live in a rural area and try to find a house to live in, you can call your “OWN HOME” a USDA loan program is a rescue for you. The United States Department of Agriculture sponsors this loan. It provides 100% financing and recognizes as a top government lender. USDA loans are classified into two main categories: Guaranteed USDA Loan and Direct USDA Loan.

A rural development loan, or a USDA Loan, is a great option for those looking for 100% financing. Recognized as a top government lender, We are working with lenders directly delegated with USDA, ensuring a smooth, quick process for both you. Count on us to hit contract dates on USDA purchases, with direct access to underwriting and industry leading turn times!

– 30-year fixed rate

– No down payment required

– No cash reserves needed

– Closing costs may be financed on some transactions

– Seller contributions allowed

– Competitively low rates

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GUARANTEED USDA LOAN PROGRAM

As you begin comparing loans, you will find that your credit is often a prime factor. It helps determine your approval and loan terms, including the interest rate. Borrowers with less than a favorable credit score or no credit score history receives USDA loan, but this might affect the interest rate charging criteria. Also, it is granted to people who have typically low income (shouldn’t be greater than 115%). The house you purchased from the USDA loan program should be your primary residency. In addition, you should demonstrate the willingness to meet credit obligations promptly. The interest rate for this loan is typically low, which usually ranges from 3% to 5% of the house’s value and depends on the documents you have provided at the time of application.

DIRECT USDA LOAN PROGRAM

These loans are provided directly by the USDA instead of any bank. The eligibility criteria for this loan include people with very low income and no safe deposit, a decent place to live, and who can’t afford any other type of loan. USDA loan program is their last lender of the resort. The borrowers don’t have to show good credit history, and they can show some utility payments. USDA charges interest rate on either the property’s market value or the closing value-whichever is lower. There is a specific limit to the amount you can borrow.

How can you qualify for the USDA loan program?

should be a resident holder of US
No down payment required
No cash reserves needed
should have a credit score of at least 640.
the property should be located in an area where the population is a maximum of 20000.
Your income should be low. Your family income meets the parameters necessary for your level of debt.

ADVANTAGES OF USDA LOANS:

USDA loan lets you buy a house with low mortgage rates. There is also no prepayment penalty. In addition, It requires flexible credit guidelines and accepts lower credit scores as well. Also, borrowers get it if their income is low and the interest rate is fixed and very low. There is an availability of a 30-years fixed rate. The borrowers can also include their closing costs in the loan because they do not have the upfront cash needed to refinance.

DISADVANTAGES OF USDA LOANS

USDA loan program has geographical restrictions and only people who live in rural areas can avail of it. It helps you to buy single-family homes only and not other housing properties like FHA and VA loans provide. It also has a maximum income limit. Your total household income cannot exceed the local USDA income limits to be eligible for a USDA home loan. The current standard loan income limit for 1-4 member households is $91,900, up from $90,300 in 2020. The 2021 limit for 5-8 member households is $121,300, up from $119,200. The USDA loan also requires mortgage insurance. The current mortgage insurance rates are:

For purchases — 1.00% upfront fee, based on the loan amount
refinancing — 1.00% upfront fee, based on the loan amount
all loans — 0.35% annual fee, based on the remaining principal balance each year