What makes USDA Loan the Best Loan?
Posted by articlelink01 on March 18th, 2014
Many consider the USDA Loan as the best mortgage loan in America today. It offers 100% financing, which means there is ZERO down payment! The USDA home loan offers some of the best market interest rates and even if your credit is not perfect, then you may still qualify, provided that you will follow all needed requirements. You might not be aware of it, but the USDA loan has been an important part of the real estate business for many years. Many people want to know what is a USDA loan and why it is the best home loan in the market today.
It is not a secret that it is very difficult to get a decent home loan nowadays. Other home loan programs today require a down payment. The amount of the down payment can vary from 3.5% to 25% down. If you put less than 20% down on other home loan programs today, it will require you carry mortgage insurance, which is included with your loan payment. USDA loans have a monthly mortgage insurance fee, but it is not based on your credit score, meaning everyone pays the same mortgage insurance rate on a USDA loan, which is currently set at .40%. This is 1/3 the cost of mortgage insurance on an FHA which is 1.35% and most conventional home loan programs are 2X the amount of a USDA loan or higher. Today, guidelines for getting a loan have been tightened, so being able to get a home loan with no down payment is expected to last for a limited time.
If you want to buy a home, then you should know more about the USDA loan process or the Rural Development Loan This loan provides opportunities for families with low income to moderate incomes and for those who do not have enough money to get a home loan. This loan can be used to buy manufactured house or build a new home. Homebuyers who choose to purchase manufactured properties need to face more requirements for USDA loan. There are lots of unique advantages that one can acquire from a USDA loan compared to traditional loans. You will get No Money Down loan or 100% financing and the seller is permitted to cover the buyers closing costs.
It is very important to know and clearly understand what is a USDA loan? It is vital to always check for the requirements within your location right before you decide to apply for the USDA loan to make sure that you can meet their guidelines for property location and the income limit.
Once the USDA loan process has cleared, you can proceed with the closing process. The interest rates on a USDA loan are similar if not better than those on FHA and conventional loan programs. The USDA home loan is currently only available in a 30 year repayment term (which is the standard home loan term today). You will be surprised to know what areas qualify for this loan. This loan is a huge help for those families within the lower income level.
What is a USDA Loan is common question that one needs to find an answer to know more about USDA loan process - https://usdaloanstexas.org/usda-loan-process.html .