There are numerous reasons for eligible
applicants to apply for a USDA Guaranteed
Home Loan.
Sometimes good credit and a steady income are not enough to
qualify for a home loan at a commercial lending institution, such as a bank, savings and loan or mortgage company.
Many rural and small community families and individuals may be eligible to become homeowners with the help of a
USDA guaranteed home loan.
When the federal government agrees to guarantee a loan, lending institutions can help buyers while incurring less risk. Through
USDA’s Guaranteed Rural Housing Loan Program, low- and moderate-income people can
qualify for mortgages even without a down payment.
The answer to the question of Why a
USDA Home Loan
and what makes this feasible and attractive
to your needs might be as follows. USDA Home
Loan requirements are realistic and overseen
by the United States Government. The
USDA
Guaranteed Home Loan has less stringent
guidelines than a conventional mortgage and
allows some flexibility that typical loan
programs do not. The following are some
requirements and allowances provided by the
USDA which makes this decision and easy one
for you and your family.
Your repayment ability is based on the
following ratios: Principle, Interest,
Taxes, and Insurance(PITI) divided by gross
monthly income must be equal to or less than
29 percent.
Total debt divided by gross monthly income
must be equal to, or less than, 41 percent.
Guaranteed loans can be made on either new
or existing homes;
Existing homes must be structurally sound,
functionally adequate, and in good repair;
Loans may be for up to 100 percent (102
percent if the guarantee fee is included in
the loan) of appraised value or for the
acquisition cost, whichever is less.
Mortgages are 30-year fixed rate at market
interest rates;
Loans may include funds for closing costs,
the guarantee fee, legal fees, title
services, cost of establishing an escrow
account and other prepaid items, if the
appraised value is higher than sales price;
Sellers may contribute to the buyer’s
closing costs;
Home buyers make application with
participating lenders;
Buyers must personally occupy the dwelling
following the purchase;
Loans may be made to refinance either
existing
USDA Rural Development Guaranteed
housing loans or Section 502 Direct
housing loans;
Closed loans have secondary market
acceptability, including Freddie Mac, Fannie
Mae, Ginnie Mae pools, and many state
housing finance agencies;
Guaranteed loans are subject to the
provisions of the Civil Rights statutes,
including the Equal Credit Opportunity Act.
USDA Home Loan Center is here to help. Interested home buyers
should call 866 588-5533 for information
about the program or
for convenience use the
secure form on our
website to
apply online.
Ready to get started? Follow the link below
and complete our convenient
online application!
How much house can I afford?
Use our online Mortgage
Calculator to figure your payment!
“The bank that I have used for the past 15 years
would not loan me the money to buy my home unless I
came up with a large down payment of almost $30,000.
That was their way of telling me no, because they
darn well knew I didn't have that kind of money. I
was referred to you and you jumped in and quickly
helped me buy the home before the contract expired.”
USDA Home Loan Center.com is NOT affiliated with any government agencies,
including the USDA (United States Department of Agriculture).
USDA Home Loan Center.com is a USDA approved lender.
Equal
Opportunity Lender
