USDA Home Loan Program – Take Advantage If You Qualify

Published by nora | Filed under Buyer / Seller Tips, Miscellaneous, Mortgage / Finance, Real Estate

As banks tighten their lending policies, check if you qualify for a USDA home loan. If you’re qualified and if the home you’re planning to purchase is located in a USDA-qualified area, then this home loan program is among the most affordable and the best home financing that you can find.

You may be thinking that USDA home loans are only for buying homes located in rural areas, and you’re partly right. The fact however is that there’s a fairly large number of homes located in areas not immediately seen as rural but qualify under the USDA home loan program. Some homes just off the peripheries of cities and thereby just about a 45-minute-drive from downtown qualify.

Your income also need not be very low to qualify. You can have up to 115 percent of the rural area’s median income. The other requirement is that you don’t currently own a home. If you have a home and you like to move to a rural area where your family can enjoy nature more, you must sell first your current home in order to qualify. Additionally, you should occupy the home as your primary residence.

Just like with other home loans, you also need to show a level of income that enables you to make the monthly mortgage payments, including the property tax and the homeowners’ insurance. Your credit history should also show you’ve been responsible in paying your debts.

There are a lot of lenders issuing USDA home loans. Lenders participating in the guaranteed home loan programs of the HUD, USVA, Fannie Mae, Freddie Mac and state housing agencies are also offering USDA home loan programs.

The most attractive characteristic of the USDA loan program is its zero down payment feature. This feature gives financial flexibility to families who are spending money to move to a certain area from out of state and for other current but non-recurring needs. The loans can be paid out over a period of 30 years.

All in all, the advantages of the USDA home loan program are the following:

• Zero down payment
• Closing costs can be funded through gifts or assistance from the seller or any entity
• Home repairs can be rolled into the loan
• Affordable mortgage rate for the fixed 30-year loan
• Local USDA-participating lenders available
• Not restricted to first time homebuyers
• Manufactured homes are considered, as long as they comply with HUD construction and site standards

In Tampa, there are homes within driving distance from downtown that qualify for USDA home loans. Tampa4U.com, a team of specialist realtors in Tampa, has a number of these Tampa homes, such as a single-family home on 5607 Dark Star Loop, Wesley Chapel, Florida 33544-1564 or on 5909 Sweet William Terrace, Land O Lakes 34639-2796.