Having a house of your own is obviously something that can put a smile on your face. As a matter of fact, everybody would like to own a house. But, the costs of buying a good house are very high. Even if cheaper options may be available on the market, they are not often as good as a good contemporary house.
Fortunately, there is the USDA loan program that you can rely on if you want to buy a home in the most convenient way. Ward off the hustles of searching for money and enjoy the benefits of a home loan program that can change your life for the better.
What is the USDA home loan program?
The USDA loan program refers to the US Department of Agriculture home loan or mortgage program. It is one of the best ways to obtain financial assistance to purchase a home. It was brought on board for the purpose of improving the quality of life of all the Americans in the rural areas. This is one of the few programs that seek to address the economic challenges of all the Americans who are based in rural areas.
It is advantageous to take advantage of this program since it entitles you to cheaper loans in general. You can get a mortgage loan at a very low interest rate. Further, accessibility to the home loan is quite simple and straight forward. This explains why it is readily available to every American living in the rural area. The loan program has invested close to $20 billion for purposes of improving the lives of almost 140, 000 American families. Since there are numerous home loans that are currently available on the market today, you have to sit down and figure out which one is right for you. Get advice from a financial expert to find out if the USDA home loan is the right one for you.
How do you qualify for the USDA home loans?
Like any other loan that is currently available, the USDA guaranteed home loans are also associated with eligibility requirements which all applicants must meet. The following are some of the most notable eligibility requirements that you have to meet in order to qualify for the loans:
- Income – Income limits often vary depending on the county and the size of the household. Further information on income limits by location can be found on the USDA home loans website. There is a map and table which you can use to get this information. Other eligibility requirements that you have to meet are as follows:
- Applicants must be US citizens or permanent residents of the US;
- Able to make a monthly payment. This also includes the principal, insurance, interest and taxes, which should be 29 % or less than the income you earn in a single month. In case you are paying off other monthly debts, the debts must not be more than 41 % of your earnings. But, the USDA often considers higher debt ratios if you have a credit score which is above 660.
- Should have dependable income, at least for 24 months;
- A good credit history or at least acceptable. As a rule of thumb, a 640 mid-FICO score is required in order to qualify. In cases where your credit was affected by circumstances beyond your control, you may still qualify for the loans provided you can prove an extenuating circumstance that led to the hardship.
- Does not have decent and/or safe housing;
- Is not able to secure a home loan from conventional sources;
- Has an income that is less than the low-income limit as specified by the area where they live. The household income must not exceed 115% of the Area Median Income or AMI.
If you believe you met all the requirements above and qualify for the USDA Guaranteed Home Loan program, it is to your benefit to speak with a Home Loan Specialist and get started on the path of home ownership.