What You Should Know About USDA Home Loans

A USDA home loan is a U.S. Department of Agriculture mortgage program that aims to make purchasing homes easily. It’s basically a mortgage assistance program. It offers a zero down payment mortgage program for rural and suburban eligible home buyers. The loans are issued through the program USDA Rural Development Guaranteed Housing Loan Program.

Of course, as friendly the terms are that are covered in this type of program, not all people can avail it. Even if you’re qualified it’s not going to be easy but if you know that you don’t have a better deal than what they offer, might as well try to get one. After all you’re qualified anyway, not all people are, might a well go to the trouble and make it work, who knows? It might even work out for you.

Who are the people that are eligible: As mentioned above there is an eligibility criterion. These eligibility criteria alone will rule out the people that can apply for it and who can’t. The criteria are pretty simple actually but hard to satisfy. This is the reason why many people who are eligible are considered lucky.

  • A US resident or a PR (permanent residence)
  • A secured monthly payment that is 29% or less of your income (monthly)
    • With principal
    • With insurance
    • With interest
    • With taxes
  • A credit score of 680
  • A proof of income for 2 years
  • A good credit history (of course anything can be justified as long as you provide proof)

The priority: Because it’s an assistance program, even if you’re eligible, like you’re the person that USDA loans were made for, you need to stop right there. Because aside from the criteria there is what you call as a priority. Surely you get it by now that the term assistance wasn’t just thrown like a random word because USDA loans are assistance loans for the people that are mentioned below:

  • That doesn’t have a sanitary and safe housing
  • People that has a hard time securing housing loans from the usual route
  • people that is considered to have a low income in the area that they live in

USDA loans are like grants (if you think about it) because even if you’re eligible the fact that its an assistance means even if you’re eligible you don’t necessarily get to be the person that will be a priority and that is understandable. With a loan assistance that has friendlier rates that can never be possible in regular loan entities it’s only right to grant it to people that needs it the most. Of course, the process can be challenging but with the right support, it should be a bit easy. If you wish to know more USDA home loans, visit onqfinancial.com today and find out how you can avail it.