USDA Loans 101


The USDA has a loan program that offers homebuyers loans in rural development areas and even some suburban areas across the country.One of the best-kept secrets in home buying are United States Department of Agriculture (USDA) Home Loans. When most of us think of the USDA, we think of things like “certified organic” and other labels we might see at the grocery store. What many people don’t know is that the USDA has a loan program that offers homebuyers loans in rural development areas and even some suburban areas across the country. The USDA’s rural development initiative is committed to helping improve the economy and quality of life in rural America. That includes supporting home loans at great benefit to the consumer. Below are the basics that make this a program so appealing to home buyers.

No Down Payment Required

Applicants who qualify for a USDA Rural Development home loan have the flexibility to pay nothing out-of-pocket for a down payment. Having the ability to obtain a home loan without paying for a down payment or closing costs is a huge benefit. USDA loans also allow borrowers to use gifts or grants to be used for a down payment if you don’t qualify for the no down payment guidelines.

Flexible Credit Guidelines

While some home loan programs may require borrowers to have a high credit score, USDA Loans are much more flexible. Borrowers with less than perfect credit scores may still be eligible for a USDA Loan.

Competitive Interest Rates

USDA Loans offer competitive interest rates on 30-year terms. These interest rates may be lower than the market interest rates on other loans. There are a number of factors that go into determining the interest rate, so it’s best to speak with your Loan Officer to find out what that interest rate might be.

No Maximum Purchase Price

The USDA loan has no limits on the purchase price of the home or property. This differs from traditional loans that have a cap on the amount of the property. It is important to note, however, that the lender will still determine the maximum amount of the loan, so be sure to speak with your loan originator to learn more.

Colonial Can Get You Started

If you are interested in finding out more information about a USDA Rural Development Loan, you’ve come to the right place. Colonial has a team of skilled Loan Officers that are happy to help you through every step of the home buying process. Give us a call today to at 817.390.2000 to start a conversation or visit www.GoColonial.com to learn more about all the award-winning home loan products we offer.

 

Related Article: Condos have become increasingly popular for homeowners who want to enjoy the benefits of homeownership while also enjoying a number of perks that a traditional home may not provide. Learn more about the Advantages of Living the Condo Life.

 

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