USDA loans or the United States Department of Agriculture loans can be a boon for people who want to have a home built in any of the rural areas marked by the department. The popularity of the loan has increased with the passage of time and now people have realized that what they considered as Farmer’s Loan can now be availed by anyone. The USDA loans are characterized by low APR and zero down payment. These loans were originally developed to provide financial aid the rural population of US but now these loans are being used by many to have a home of their own.
The USDA Loans has been one of the biggest partners of the real estate business in the US and the program which was once used to provide stimulus to the rural development has now become an easy resource for the real estate enterprises. Earlier, the bigger lenders in the market shied away from providing loans to the rural populace and in order to provide the necessary housing finance to this demography, USDA loans were created. There are several benefits of USDA loans and some of the marked ones are as follows:
- Zero down payment for approval of USDA loans
- The Mortgage rates remain fixed for 30 subsequent years
- The loans can be used to provide 100% of appraisal
The eligibility criteria for USDA loans are also simple – the applicant needs to be a citizen of the United States of America or a legally permitted resident of the nation. The annual income of the applicant should be lesser than the limit of the United States Department of Agriculture. The poof of payment along with an average credit history is another criterion.
The USDA loans can be approved within a very short time period and these loans provide a great opportunity for those who are otherwise not offered loans by the banks and lenders in the city. Borrowers can also expect to get relief from the monthly mortgage insurance payment. The USDA loans places the borrower in a better financial condition, which implies higher savings. These loans are meant for all those people who want to enjoy low interest rate and flexible repayment terms. This is also a suitable loan for the borrowers who are applying for a second loan.
Majority of the real estate companies that have a nationwide presence take advantage of offering these loans to their customers. prior to applying for these loans it is imperative to acquire as much details as possible, so that the borrowers are aware whether they are eligible for the loans or not.