Why is a USDA loan superior to other loans like Conventional or even FHA?
No down payment
One of the greatest benefits of a USDA loan is that it offers 100% financing. One of the biggest struggles of buying a new home is saving up the down payment. With a USDA loan this is no longer a problem!
Allows For Average Credit
This loan allows for borrowers with some blemished credit or a short credit history to still receive a loan. Lenders may also accept alternate forms of tradelines such as phone bills, utilities, car insurance, etc.
Lower-Than-Market Interest Rate
This loan type is insured by the U.S. Department of Agriculture, meaning that the USDA guarantees against any losses, making this type of loan a very low risk investment for the bank. This allows for lower-than-market interest rates when choosing a USDA loan.
Very Low Mortgage Insurance
Many loans require mortgage insurance on the property. Mortgage insurance lowers the risk to the lender of making a loan to you. USDA loans offer a significantly lower rate for monthly mortgage insurance the other loans such as FHA
You can apply for a USDA Loan if you meet the following criteria:
You meet the income-eligibility requirements
A borrower is not to exceed 115% of the median income for the county. The purpose of this is to save the program for low to medium income borrowers.
You agree to personally occupy the dwelling as your primary residence
You purchase a property that is in a designated zone