People are always looking for a way to purchase a home without being required to put money down. In today’s market it has been hard for people to save money to put down on a new home while at the same time trying to live and be able to pay their bills. There is hope for these buyers through The Guaranteed Rural Housing Loans (USDA) Rural Development program.
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What Is The USDA Program
The USDA program is a program that is designed for people who have had a poor credit history in the past, who have no down payment and are looking for loans no credit check. The thought of no credit check can be exciting but that is not always the truth. Most of these USDA loans will offer a competitive thirty year fixed interest rate and will be the best type of loan for many borrowers.
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Eligibility
As with any other type of loan the applicant or applicants must prove that they meet the income requirements. They should have a steady and adequate amount of income when applying for this loan. The applicant should also be a legal citizen of the United States or have the proper paperwork processed through the government.
Other items that may help to make the decision is that of the applicants credit history and if they show responsibility to meet their payment obligations when they come due. It is more common for a lender processing a USDA loan to accept a lower credit score for the applicant than it would be for a traditional or conventional home loan. It is important to check with the lender if you have any other questions or need more information regarding the USDA loan that you are trying to obtain.
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Homes That Qualify
Not every home out there for sale will qualify for the USDA home loan. There are qualified areas in which these loans will be offered. Once a home is found in these areas the home should be structurally sound, function well and be in good repair. The good news is that there are no given restrictions on the size of the home or the design of the home.
Another requirement for this type of loan is that the home must be the primary residence of the borrower. The home cannot be used for any income producing benefits such as a rental property.
If you are one of the people out there who is looking to purchase a home and the economy is not cooperating with you a home in a rural area may be the perfect opportunity for you. A USDA loan is much less expensive than a traditional loan and gives the future homeowner the best opportunity to purchase the house of their dreams without breaking the bank at the same time.
Finding information on USDA loans is simple to do however if you happen to run across questions while doing research a mortgage loan officer should be able to assist you.