The Benefits of the USDA Home Loan
BRIAN BIRK | 4-MINUTE READ
A USDA loan, also known as a USDA Rural Development Guaranteed Housing Loan, is a mortgage loan offered by the United States Department of Agriculture to help people in rural areas purchase or improve their homes. Here are some of the benefits of a USDA loan:
- No down payment: One of the most significant benefits of a USDA loan is that it requires no down payment. This means that eligible borrowers can finance 100% of their home’s purchase price. Other programs that offer no money down options include the VA Loan for Military families. Still lacking a down payment, find out about Grants available in your city.
- Lower interest rates: USDA loans typically have lower interest rates compared to conventional loans, which can save borrowers money over the life of the loan.
- No mortgage insurance: USDA loans do not require private mortgage insurance (PMI), which can save borrowers hundreds of dollars per month.
- Flexible credit requirements: USDA loans are available to borrowers with lower credit scores and limited credit histories. However, applicants should have a steady income and a good credit history.
- Eligibility for home improvements: USDA loans can be used not only to purchase a home but also to make necessary improvements or repairs to a home.
- No prepayment penalty: USDA loans do not have a prepayment penalty, which means that borrowers can pay off the loan early without incurring any additional fees.
Overall, USDA loans can be an excellent option for those who want to purchase a home in a rural area and meet the program’s eligibility requirements.
For USDA Home loan Questions call (888) 767-0554 or Get Pre-Approved Today.