USDA Loan Checklist for Lenders? First of all, just What Is A USDA Loan? What is the USDA? Wait, the United States Department of Agriculture issues Mortgage Loans? USDA Loans? But wait, I don't want to buy a farm!
We'll answer all our questions in a moment, but first, let's understand what a USDA Loan is. You don't have to buy a farm to meet USDA Loan Eligibility. All you have to do is Meet The USDA Loan Requirements. And what is the USDA Loan Rates?
"USDA provides homeownership opportunities to low- and moderate-income rural Americans through several loans, grant, and loan guarantee programs. The programs also make funding available to individuals to finance vital improvements necessary to make their homes decent, safe, and sanitary. USDA Multi-Family Housing Programs offer Rural Rental Housing Loans to provide affordable multi-family rental housing for very low-, low-, and moderate-income families; the elderly; and persons with disabilities. In addition, rental assistance is available to eligible families." - usda.gov
So, the United States Department of Agriculture does offer Home Mortgage Loans! But is it a deal? Are they a better deal than a conventional loan? Are they easier to qualify for? How about the USDA Loan Credit Score? Are the income requirements lower?
First, how does a borrower qualify? USDA guidelines basically require applicants are:
USDA loans are designed to help people living in rural areas purchase a residential home. Happily, the USDA's definition of "rural "is broad, and many suburbs qualify.
According to the USDA, rural areas are defined as "open country, which is not part of an urban area."
The agency's broad definition makes approximately 97% of the nation's land eligible for a rural development loan, including an estimated 100 million people.
Those are the advantages; here are some of the requirements for applying for a USDA Home Mortgage Loan:
There Is No Excuse Not To Try.
So now you've seen the rules. There are some restrictions to consider, but overall, these loans offer a lot for many home buyers. If you're on the wrong side of qualifying for a conventional home mortgage loan, for whatever reason – income, credit history, debt, savings, or employment, the United States Department of Agriculture might be your lifeline. And that's exactly what it's designed for: get people or families into affordable housing! So if it fits your needs, then there's no reason not to jump in.