The USDA (United States Department of Agriculture) mortgage program was created for low income families looking to buy a home in rural areas. Also known as Rural Development and Farmers Home Loan. This program has become more and more popular in recent years, because of the tightening of lender guidelines with other conventional mortgage loans.
There are many benefits of a USDA Rural Housing mortgage loan, but these are the main benefits that makes this program one of the best mortgage loans available.
No Down Payment Required
This mortgage program still allows you to buy a home with no money down. It’s one of the only programs still available that allows 100% financing. This is a great benefit, because you can buy a home with very little money out of pocket. This leaves more money for home improvements and savings for future repairs of anything breaking down in the home.
Conventional mortgages require a PMI (Private Mortgage Insurance) payment, in addition to the regular mortgage payment, if you don’t have a down payment of at least 20%. The USDA Rural Housing program does require PMI but it is very very low, even if you finance 100% of the purchase price. This is a huge benefit, since it keeps your mortgage payment low, while allowing you to qualify for a larger mortgage loan. In addition the County taxes only make the payment even lower! No one wants to pay PMI, because it’s not applied to the principal balance or the interest you pay over the life of the mortgage loan.
Low Interest Rates
Even though you don’t have to put any money down with USDA Rural Housing mortgage loans, you will still receive a lower interest rate. Depending on your situation, typically, the interest rates are not much more than 0.5% higher than conventional mortgage loans. This is a great benefit in addition to not having to come up with a down payment and paying very low PMI. A lower interest rate will save you tens of thousands in interest payments over the life of the mortgage term.
These 3 benefits alone will put you in a better position to buy an affordable home. Allow us to show you the way! You can complete the simple, safe, and secure pre-qualification tab above or click here to start!www.Link2approve.com - Its easy as 1-2-3