What Is a USDA Loan?
If you are thinking of buying a home and applying for a mortgage, chances are you have heard of several types of loans. It’s usually best to work directly with a lender to figure out what sort of mortgage is best for your situation. Here is an overview of a USDA loan, which is a government-backed loan that may be a good option for you if you meet the requirements.
Loan Benefits
One of the biggest advantages of a United States Department of Agriculture loan is that it doesn’t require borrowers to have a down payment. This type of loan may be an option for buyers who can’t meet the down payment requirements for a conventional loan. An experienced lender, such as Sun West Mortgage, can provide detailed information on the potential benefits of a USDA loan.
Type of Property
To qualify for this type of loan, the property you want to buy must be in an area that the USDA considers to be rural. In some cases, properties in suburban areas may qualify, as long as they meet certain standards set forth by the government organization.
Eligibility Requirements
In order to apply for a USDA loan, you must meet be a U.S. citizen and plan to use the home as your primary residence. There are also requirements for credit score and income.
If you want to buy a home in a rural area, you may want to apply for a USDA loan. If you qualify, you could purchase your home without a down payment.