USDA loans are zero-down payment mortgages for people wanting to buy homes in rural areas.
If you prefer the calmness of the rural life, and to stay away from the humdrum of city life, then you should consider applying for the USDA loan program. Surprisingly so, even though the program is very helpful for eligible homebuyers, the program is not very well known.
Speaking of eligible homeowners, how do you know that you are one?
Are you eligible for USDA loans?
Being that this is a very affordable and cost-effective loan program, this loan would be the best way for you to get a rural home. All you need is to follow and quality for the guidelines put up by the USDA loan program.
The requirements to qualify for the USDA loan are the following:
- Applicant must be a U.S. resident, non-citizen national, or Qualified Alien.
- The property to be financed is located in one of the USDA designated areas. To determine if the property fits this first guideline, consult counselors from the Federal Home Loan Centers.
- The property to be financed should be used as the buyer’s primary residence. The program does not allow financing on second homes or on investment properties.
- First-time and repeat buyers alike can avail of the loan program. With a connection to guideline two, the buyer must not own another house at the time of purchase.
- The USDA loan can finance the total purchase price along with the upfront MI.
- Applicants should have decent credit history even if USDA does not have a minimum credit score requirement. This is to ensure that the applicant can repay the loan conveniently.
- The applicants’ income should not exceed 115% of the AMI (area median income).
- W2 income or self-employment is approved by USDA. Applicants should be able to provide documents for income and employment.
- Gift of closing costs is allowed by USDA.
- Sellers and lenders are allowed to contribute towards the closing costs but not more than 6% of the total sales price.
- The loan term is a 30-year fixed rate.
How to find USDA loans in Texas near me?
If you have been planning to move to Texas to enjoy the diversity of its landscapes, worry no more. When you are looking for USDA loans in Texas near me, there is no need to go from lender to lender. A good lender can provide you with the necessary answers to the loan details that you are confused about. Simply search for USDA loans in Texas near me online and you’ll be able to directly find a lender that can help you. Once you’ve talked to them and have your questions answered, simply fill their forms and follow through with their instructions. Your dream home and environment would now just be within arm’s reach.