No Credit Score Benchmark
The biggest concern for a typical home buyer is whether or not they will qualify for a mortgage loan. Thankfully, the USDA Rural Development Program itself doesn’t require borrowers to meet any benchmark in terms of credit scores. The minimum requirements for credit score are set by the lenders and will greatly vary between them. Typically, you should have a minimum FICO score of 640 to qualify for a USDA loan.
No Down Payment
In the past, there was no concept of a mortgage loan without a down payment. USDA loans allow qualified borrowers to purchase without paying a down payment. Other than VA loans, USDA mortgage loans are the only financing options that charge 0% down.
Low Mortgage Insurance
When acquiring a conventional loan, you must be ready to pay private mortgage insurance (PMI) if you don’t pay a 20% payment. With USDA loans, you don’t’ have to pay PMI. Instead, you’re supposed to pay a 1% upfront guarantee fee upon loan closing and a 0.35% annual fee that’s incorporated into your monthly mortgage payment.
This means that the funding fee for USDA loans is the lowest, even lower than other government-backed loan products.
97% of the Country Can Qualify
When you hear that the mortgage option is only available to those relocating to a rural area, you might discard the option. But when you study the definition of a USDA loan, you realize that the net is quite broad. USDA defines it as any area with a population of less than 35,000 people. Hence, a large number of US states are covered by USDA’s eligible, rural areas.
These were some of the reasons why you need a USDA loan. Because the exact terms to qualify can vary from one lender to another, you need to choose your mortgage lender wisely. Consider the experience and ratings of a lender when making a choice.
For USDA loans for properties around Cape Coral, FL, contact Elite Mortgage Source today.
Cape Coral, FL - Need Top-Rated USDA Loans? Contact a Local Mortgage Lender
SYNOPSIS: Are you considering USDA loans for home financing? Read on to study why they might be the right option for you.
USDA loans are designed to help suburban and rural Americans accomplish their home ownership dream. If you’re not a downtown lover, are
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Are you considering USDA loans for home financing? Read on to study why they might be the right option for you.
USDA loans are designed to help suburban and rural Americans accomplish their home ownership dream. If you’re not a downtown lover, are not a fan of vibrant city life, and wish to buy a home outside of densely populated areas, a USDA loan is the perfect home financing option for you. In this guide, we’ll dig deeper into why you need a USDA loan, but before that, let’s discover what a USDA loan is.
What is a USDA Loan?
A USDA loan is a government-sponsored mortgage option issued by the US Department of Agriculture as part of its Rural Development Program. The financing option is designed specifically for those looking to purchase a property in rural areas and may not otherwise qualify for conventional home financing. Here are some of the reasons why you need a USDA loan:
Why You Need a USDA Loan?
No Credit Score Benchmark
The biggest concern for a typical home buyer is whether or not they will qualify for a mortgage loan. Thankfully, the USDA Rural Development Program itself doesn’t require borrowers to meet any benchmark in terms of credit scores. The minimum requirements for credit score are set by the lenders and will greatly vary between them. Typically, you should have a minimum FICO score of 640 to qualify for a USDA loan.
No Down Payment
In the past, there was no concept of a mortgage loan without a down payment. USDA loans allow qualified borrowers to purchase without paying a down payment. Other than VA loans, USDA mortgage loans are the only financing options that charge 0% down.
Low Mortgage Insurance
When acquiring a conventional loan, you must be ready to pay private mortgage insurance (PMI) if you don’t pay a 20% payment. With USDA loans, you don’t’ have to pay PMI. Instead, you’re supposed to pay a 1% upfront guarantee fee upon loan closing and a 0.35% annual fee that’s incorporated into your monthly mortgage payment.
This means that the funding fee for USDA loans is the lowest, even lower than other government-backed loan products.
97% of the Country Can Qualify
When you hear that the mortgage option is only available to those relocating to a rural area, you might discard the option. But when you study the definition of a USDA loan, you realize that the net is quite broad. USDA defines it as any area with a population of less than 35,000 people. Hence, a large number of US states are covered by USDA’s eligible, rural areas.
These were some of the reasons why you need a USDA loan. Because the exact terms to qualify can vary from one lender to another, you need to choose your mortgage lender wisely. Consider the experience and ratings of a lender when making a choice.
For USDA loans for properties around Cape Coral, FL, contact Elite Mortgage Source today.
No Credit Score Benchmark
The biggest concern for a typical home buyer is whether or not they will qualify for a mortgage loan. Thankfully, the USDA Rural Development Program itself doesn’t require borrowers to meet any benchmark in terms of credit scores. The minimum requirements for credit score are set by the lenders and will greatly vary between them. Typically, you should have a minimum FICO score of 640 to qualify for a USDA loan.
No Down Payment
In the past, there was no concept of a mortgage loan without a down payment. USDA loans allow qualified borrowers to purchase without paying a down payment. Other than VA loans, USDA mortgage loans are the only financing options that charge 0% down.
Low Mortgage Insurance
When acquiring a conventional loan, you must be ready to pay private mortgage insurance (PMI) if you don’t pay a 20% payment. With USDA loans, you don’t’ have to pay PMI. Instead, you’re supposed to pay a 1% upfront guarantee fee upon loan closing and a 0.35% annual fee that’s incorporated into your monthly mortgage payment.
This means that the funding fee for USDA loans is the lowest, even lower than other government-backed loan products.
97% of the Country Can Qualify
When you hear that the mortgage option is only available to those relocating to a rural area, you might discard the option. But when you study the definition of a USDA loan, you realize that the net is quite broad. USDA defines it as any area with a population of less than 35,000 people. Hence, a large number of US states are covered by USDA’s eligible, rural areas.
These were some of the reasons why you need a USDA loan. Because the exact terms to qualify can vary from one lender to another, you need to choose your mortgage lender wisely. Consider the experience and ratings of a lender when making a choice.
For USDA loans for properties around Cape Coral, FL, contact Elite Mortgage Source today.
