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USDA (rural housing) loans
USDA Loan Highlights
* No Down Payment
* 640 or Higher Credit Score
* 1.00% Upfront Mortgage Insurance Premium
* Financed into Loan Amount
* 0.35% Monthly Mortgage Insurance
* Remains for Life of Loan
* Income and Property Areas Restricted
* Great Option for Borrower(s) in Rural Areas
USDA loans are home loans backed by the U.S. Department of Agriculture (USDA) and are designed to help low to moderate-income families in rural and suburban areas become homeowners. The USDA loan program aims to improve the quality of life in rural communities by increasing access to affordable housing.
One of the primary benefits of USDA loans is that they require no down payment. This can be a significant advantage for borrowers who do not have the funds for a traditional down payment. Additionally, USDA loans offer flexible credit requirements and lower interest rates than conventional loans. This makes them a great option for borrowers with low to moderate incomes or limited credit histories.
To qualify for a USDA loan, borrowers must meet certain income and location requirements. USDA loans are available only in designated rural and suburban areas and income restrictions vary by location. Borrowers must also demonstrate a capacity for repayment of the loan and meet other basic eligibility requirements.
Overall, USDA loans are a good choice for borrowers who want to purchase a home in a rural or suburban area and who do not have the funds for a down payment. They offer competitive terms, flexible eligibility requirements, and can help lower-income families become homeowners.