USDA loans are designed to allow you to buy, renovate, refinance or relocate your home when required. Though this program is basically similar for all regions but there are certain eligibility terms to qualify before applying for this easy USDA loan. It was specially designed to improve the home ownership conditions in rural areas. Even people living in urban areas can also avail this loan if they want to relocate in rural areas. It has made mortgage loans so easy that every one tends to avail it. Brief information about this loan and its eligibility terms is provided in their write up for your consideration.
Basic features of USDA loan
Not confined to first time buyers only: Most of the people think that USDA loan is designed only for first time buyers or who has not purchased a house since past 3 years. You ca avail easy USDA loan even if you have owned a home during last 3 years. Though one can not own more than one home at a time but in exceptional cases including owning a home in other area or relocation of job you can avail it which has made mortgage loans so easy.
Zero down payment loan program: You can buy a house without making any down payment with the help of USDA loan. The best thing about the easy USDA loan is that any size of your down payment can not affect the affordability of this loan. The government fee and loan rate remains the same whether you make a small down payment or huge.
It is not to buy farm land: Most of the people misinterpret USDA loan as a loan to buy farm land. In fact you can not use this loan for buying a profitable property along with a farm land. You can buy only the residential houses in rural areas out of the metro cities. One should check the eligibility of the area for this loan before applying for the easy USDA loan.
Eligibility terms for USDA loan
Certain guidelines are provided with this easy USDA loan program to ascertain the eligibility if the applicant. They may include:
- The home to be bought should be located in the eligible area approved by USDA
- The income of the buyer should be within the limits approved by USDA according to the area.
- In order to get more information about USDA loan which has made mortgage loans so easy, you should visit the website of USDA and click on the Loan Program Basics link and select a suitable home loan program from the list provided on it.
- To determine the eligible location of the property you should click on the Property Eligibility link and select Rural Development program of your choice. You will be forwarded to a property eligibility screen according to the program.
- The income eligibility of the applicant can be determined by clicking on the Income Eligibility link and selecting Rural Development program. According to the selected program you will be directed to income eligibility screen.
Thus USDA loans have made mortgage loans so easy as they are easy to apply.