With many loan options available, USDA Loans rank as THE BEST for getting into your dream home. USDA Loans have many features that make them superior to home loans through a bank. Also known as Rural Development Loans, USDA Loans are insured and guaranteed through the USDA Rural Development Guaranteed Housing Loan Program. In the year 2015 alone, the USDA funded over 171,000 loans through the USDA Loan program to help applicants buy a home of their own.
With a USDA Loan, your down payment will always be $0. While other home loans will require a down payment reaching tens of thousands of dollars, you can be assured that with a USDA Loan you are getting a NO MONEY DOWN loan. The USDA Loan Program is designed to provide consumers with a low interest rate. Interest rates with a USDA Loan are fixed, which means your monthly payment will not change due to a fluctuating interest rate throughout the length of the loan.
While there are many factors that determine the amount of time to complete your loan, a USDA Loan can close in 30 days.
With a USDA Loan, your down payment will always be $0. While other home loans will require a down payment reaching tens of thousands of dollars, you can be assured that with a USDA Loan you are getting a NO MONEY DOWN loan. The USDA Loan Program is designed to provide consumers with a low interest rate. Interest rates with a USDA Loan are fixed, which means your monthly payment will not change due to a fluctuating interest rate throughout the length of the loan.
While there are many factors that determine the amount of time to complete your loan, a USDA Loan can close in 30 days.
Services
We know that our stability is a byproduct of our experience.
The experts at USDA RD Loans were here yesterday, we are here today, and most importantly, we will be here tomorrow.
We became an industry leader in USDA mortgage loans by offering solutions that were built around your needs as a homebuyer.
With over eight years of Rural Development lending under our belt we have the ability to find the perfect solution for your situation.
From the moment you begin working with us you will see that our technology is unmatched.
The experts at USDA RD Loans were here yesterday, we are here today, and most importantly, we will be here tomorrow.
We became an industry leader in USDA mortgage loans by offering solutions that were built around your needs as a homebuyer.
With over eight years of Rural Development lending under our belt we have the ability to find the perfect solution for your situation.
From the moment you begin working with us you will see that our technology is unmatched.
A loan pre-qualification means that your credit and income has been verified and meets the initial loan requirements.
In order to be pre-qualified a loan originator must review your credit report and your income documents to ensure you meet the loan guidelines.
Please note, by law, you cannot be "approved" until the underwriter reviews your full file which includes a fully executed purchase agreement.
This is why you must make an offer on a home and get a signed purchase agreement in order to get your file to the underwriter.
In order to be pre-qualified a loan originator must review your credit report and your income documents to ensure you meet the loan guidelines.
Please note, by law, you cannot be "approved" until the underwriter reviews your full file which includes a fully executed purchase agreement.
This is why you must make an offer on a home and get a signed purchase agreement in order to get your file to the underwriter.
A USDA Mortgage Loan is a true no money down home loan that can be used to purchase an existing home.
The loan is offered by a third party lender and USDA is the government agency that insures the loan.
If a homeowner defaults on the mortgage USDA pays back a portion of the money lost to the lender.
This is how they can offer 100% financing with low rates and fixed terms, as the lender is insured to receive money from USDA if the buyer defaults.
You must be purchasing a home in an eligible area.
The loan is offered by a third party lender and USDA is the government agency that insures the loan.
If a homeowner defaults on the mortgage USDA pays back a portion of the money lost to the lender.
This is how they can offer 100% financing with low rates and fixed terms, as the lender is insured to receive money from USDA if the buyer defaults.
You must be purchasing a home in an eligible area.
When qualifying for a USDA loan you must determine how much home you can afford.
How much you can afford will depend on what your current credit obligations are and your current rate of pay.
Determining how much you can borrow is done by calculating your debt to income ratio.
To learn more about debt to income ratios and other guidelines visit our USDA Guidelines section.
To qualify for a USDA Home Loan your previous payment history will be considered.
An underwriter will need to verify that you have established a history of paying your bills in a timely manner.
How much you can afford will depend on what your current credit obligations are and your current rate of pay.
Determining how much you can borrow is done by calculating your debt to income ratio.
To learn more about debt to income ratios and other guidelines visit our USDA Guidelines section.
To qualify for a USDA Home Loan your previous payment history will be considered.
An underwriter will need to verify that you have established a history of paying your bills in a timely manner.
To qualify for a USDA loan you need to have a credit score of 620 or greater.
Your USDA loan underwriter will review a copy of your credit report from each of the three credit bureaus (Transunion, Experian, Equifax) to determine your credit score.
Each of the three bureaus will assign a credit score based off what is reporting on your credit.
The underwriter will throw out the high and low scores and will use your middle score as your credit score.
If your credit score is between 620 and 639 your file will be manually underwritten, meaning that you will need compensating factors to help your loan get approved.
Your USDA loan underwriter will review a copy of your credit report from each of the three credit bureaus (Transunion, Experian, Equifax) to determine your credit score.
Each of the three bureaus will assign a credit score based off what is reporting on your credit.
The underwriter will throw out the high and low scores and will use your middle score as your credit score.
If your credit score is between 620 and 639 your file will be manually underwritten, meaning that you will need compensating factors to help your loan get approved.
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