There are so many types of mortgage loans out there. Often times people who have 5 to 8 thousand dollars think they do not have enough for a down payment but one of the loans that allow these clients to buy are USDA Loans.
What is a USDA Loan?
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 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.
Am I Eligible for a USDA Loan?
Eligibility will be determined by three factors:
Credit Worthiness: When an underwriter reviews your credit 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.
Income: 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. Call me to see if the property you are interested in meets USDA Eligibility. 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 communities thrive by making land and property more affordable.
Call me at 484-762-8120 or email me at email@example.com for more information!
Have a great weekend!