USDA Mortgage Loans
Do you love the country life? Are you looking for a home surrounded by pastures and farmland? U.S. Department of Agriculture (USDA) loans provide assistance for low-income families looking to purchase homes in rural areas. Let us help you determine whether you’re eligible and take the next step toward your dream of becoming a homeowner.
What is a USDA loan?
A USDA loan has the backing of funds set aside by the USDA to improve the quality of life for rural families. These funds may be used to build, relocate, or renovate a home and may also be used to improve living conditions onsite (such as digging a well or installing a sewage system).
Are You Eligible?
Eligibility requirements have been set by the USDA to promote the goals of the program. They include:
- Income—Income may not exceed 115% of the median income for the area.
- Current housing—Applicants must currently be without adequate housing to meet their needs.
- Financial requirements—Applicants must have the ability to make monthly mortgage payments and must have a reasonable credit history, yet be unable to receive credit approval elsewhere.
The USDA provides specific requirements for various types of loans, depending on the type of purchase you plan to make.
What Are the Terms of the Loan?
Loan terms may vary slightly among lenders, but here are the basics you need to know:
- Loan Term: 30 years
- Interest Rates: Determined by the lender
- Down Payment: Not required
- Repayment Ability: Your lender will determine whether you have the ability to repay the loan based on your gross income and total debt.
- Housing Requirements: Eligible houses must be modest compared to others in the area. They must also meet voluntary national model building code standards. If you plan to purchase a manufactured home, it must be installed permanently on the site. Manufactured homes must meet the standards for HUD Manufactured Housing Construction and Safety and HCFP thermal and site standards.
- Approval: The loan must be approved by Rural Development officials.
Ready to Buy?
Talk to a Money Street Mortgage home loan expert about getting approved for a USDA loan in Miami, Orlando, or Clearwater. We will answer your questions and walk you through the process step by step. Call us today!