USDA Home Loan Benefits

Are you looking for home at 0% down payment but aren’t a military veteran? Then I have great news for you! USDA offers a loan program for those looking to purchase, refinance or rehabilitate a home that is located in a rural area. The program is intended to give low income individuals an opportunity to buy or rehabilitate a home at 0% down. Aside from not having to put any money down, the USDA loan program comes with many great advantages.

Advantages

Because the USDA guarantees this program, lenders are able to offer some of the lowest interest rate on the market. Rates will still vary from lender to lender, however they will be lower than that of conventional loan programs. Another great aspect of the USDA loan is having the lowest monthly mortgage insurance of all government backed loans. While FHA has an upfront funding fee of 1.75% and VA’s funding fee is 2.15%, USDA has a low up front rate of 1% of the loan amount; Furthermore, the annual mortgage insurance fee is only .35% of the loans current balance compared to .85% with FHA.

Rehabilitation

As if the benefits weren’t good enough, think again. This program allows individuals to purchase a home that is in poor condition and use the funds to fix it up. This also includes building a home on USDA land. Now you can have your dream getaway home built away from the hustle and bustle. In this case the USDA combines a construction loan with a traditional 30 year fixed loan.

Do you love your home but wish it was in the great outdoors? Well this program can be used to relocate a home to a rural area. Many people choose to relocate their homes for various reasons. Some relocate to get away from the city, from violent areas, and to avoid areas where natural disasters occur. There are instances that a home can be refinanced using a USDA loan, however it is subject to certain eligibility requirements.

To learn more about the program or to get started on an application, contact us today.