USDA Loans
Why a USDA Loan?
When it comes to securing the best possible mortgage rates, we have numerous options. Whether you are purchasing a new home or looking to refinance your existing property, a fixed-rate mortgage can be beneficial if you plan to stay in your home for an extended period of time.
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What is a USDA Loan?
A USDA loan (also called a Rural Development Loan) is a government insured home loan that allows you to purchase a home with NO Money Down. USDA loans offer 100% financing to qualified buyers, and allow for all closing costs to be either paid for by the seller or financed into the loan. USDA offers some the lowest rates of any loan, and you will always have a fixed interest rate.
Am I eligible for a USDA Loan?
These loans are designed to help families without adequate housing finance the purchase of a home in a rural area. Applicants may have incomes up to 115% of the area’s median income and must be able to afford mortgage payments, including insurance and applicable taxes. Credit score is also considered in the application process.
USDA loan eligibility
USDA loan eligibility will be determined by three factors:
- Credit Worthiness: When an underwriter reviews your credit on a USDA loan one major thing they will be looking for is a history of paying your bills in a timely fashion. If you have had blemishes in the past they may be overlooked as long as you have reestablished your credit over the past 12 months. Generally, any open judgments or collections will need to be paid off before you close on your new home.
- Income: USDA will generally want to see a two year history of employment or consistent income. Exceptions on the two year requirement can be made for applicants such as students. On a USDA loan, assets are not required for approval, but can help overcome any possible blemishes on credit. To qualify, the borrower’s income may not exceed 115% of the US median family income.
- Where you Live: Your home must be located in a designated USDA rural area. Your mortgage advisor can check the USDA Eligibility of your County. It might surprise you just how many areas of the United States do qualify for these no money down home loans. The goal of the USDA loan program is to help our nation’s smaller, rural communities thrive by making land and property more affordable.
Why choose Lenox/WesLend?
Personalized Help. Your Lenox/WesLend mortgage advisor will explain all the steps–from getting started, to locking in your low rate, to closing your loan. Because we are a direct lender, if you have any questions during the loan process, you will have one direct number enabling you to get quick answers straight from the source.
We’ll close your loans fast! On average, our loans close in a little over 30 days.
Learn More About the USDA Loan Application Process Contact us and we will be happy to walk you through the USDA loan application process and answer any questions that may arise.