The United States Department of Agriculture (USDA) has established a program called USDA Home Loans that help people acquire houses in the rural areas of the country. They are absolutely zero down payment schemes, which would be a great help if you’re having trouble finding the money for a down payment fee.
How do USDA Home Loans Work?
USDA Loans work exactly like how they are described – as Zero Down Home Loans. You apply for a USDA home loan without needing to worry about the down payment. The total house price would be financed by the USDA Home Loan Program.
USDA home loans have features that make them better than conventional loans. Here are some of them.
- No Down Payment – The biggest advantage of the USDA Rural Housing Loan is it’s $0 down payment option.
- Competitive Interest Rates – All thanks to the USDA’s guarantee, lenders are able to offer some of the lowest interest rates on the market.
- Low Monthly Mortgage Insurance – Conventional loans usually require you to pay “private mortgage insurance” or PMIs if you’re not able to give the required down payment. While the USDA only uses two fees: the upfront guarantee fee (paid once when you close on the loan), and an annual fee (lumped into your monthly mortgage payment).
- Millions are Eligible – The USDA gives generous definition to what defines as a rural area. In fact, the vast majority of the USA fall within the USDA definition of a rural area.
Is it trustworthy?
USDA Home Loans Maryland is the best option for people looking to buy their first home. Millions of individuals and thousands of families have been helped by USDA Home Loans already. Is it trustworthy? Yes, it is! Though, even with the numbers of people helped and its great benefits, the program still remains one of the least known loan programs in the United States.
USDA Eligibility Guidelines
To be eligible for USDA home loans, there are a few guidelines to follow. Here are the minimum guidelines:
- S. citizenship or legal permanent residence (non-citizen national or qualified alien).
- Creditworthy, and applicant must be able to prove he/she is such.
- Must have a stable and dependable income.
- Must have the willingness to repay the mortgage
- Adjusted household income is less than or equal to 115% of the area median income.
- The property to be financed is to be used for primary residence. NO financing would be given for second homes or investment properties.
How to apply for USDA Home Loans Maryland?
USDA Home Loans Maryland would be your best option to obtain a dream home in the Maryland rural area. To apply for USDA loans there, try searching up online for trusted USDA lenders. Talk to them, ask them relevant questions about your loan application. If they are good lenders, they’d be able to gain your trust and help you with your application process easier.