Where to go to Lean About the USDA Home Loan
If you aren’t familiar with this type of home financing, there is a website dedicated to USDA home loans that is helpful.
If you think a USDA loan might be something purely agricultural, something farmers use to buy cattle, let me give you a brief overview of the program.
There are 2 main benefits of the USDA Home Loan. First, it is a true no money down home loan. Despite the elimination of virtually all other $0 down mortgages, the UDSA Home Loan still remains as a viable way to purchase a home with literally no money out of pocket, if you qualify.
Second, unlike conventional loans with a loan to value ratio over 80%, with this program, there is no mortgage insurance, easily saving a homeowner a couple hundred dollars a month.
If it is such a great program, why doesn’t everyone use it for their home financing? Good question. The answer is because not everyone qualifies, and that’s where this USDA Home Loan site comes in.
There are 2 eligibility requirements over and above a conventional mortgage that one needs to consider. First, there are income requirements. In order to qualify, your household’s total monthly income must be below a certain amount depending on the number of people in your household, county or metro area, etc. Second, there are location restrictions on the house you buy. Only areas designated eligible by the USDA qualify for this type of home loan.
Using the USDA Home Loan Eligibility section of the site, you can determine if you meet both the income and location requirements for the USDA home loan. Assuming you do, the process is very similar to obtaining a conventional finance loan.
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