USDA Guaranteed Home Loans
USDA Mortgage Loan Eligibility
In order to be eligible, the home must be located in a designated rural area.
To be eligible for a USDA Guaranteed Loan Program, applicants must:
- Meet income-eligibility
- Agree to personally occupy the dwelling as their primary residence
- Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
- Have the legal capacity to incur the loan obligation
- Have not been suspended or debarred from participation in federal programs
- Demonstrate the willingness to meet credit obligations in a timely manner
- Purchase a property that meets all program criteria
The USDA is not limited to first-time homebuyers. The loans were set up to assist eligible homebuyers despite the fact that they own a home before or not.
Benefits Of USDA Mortgages
There are many great benefits as well to a USDA Mortgage Loan, there are no credit or income verification since the loan is insured by the US Department of Agriculture, with this being so the borrowers have an advantage over other conventional loan options.
With a lower interest rate and lower monthly mortgage bills, USDA borrowers can apply funds saved on other essential household expenses.
The USDA Rural Home Loan Program gives borrowers the ability to finance closing costs into the loan itself and the underwriting guidelines are more relaxed and credit ratings are not as essential.
The USDA Guaranteed Home Loan is the only federal homeownership program that actually is able to assist low-income households in rural areas.