USDA rural housing loans are backed by the government and provide 100% financing for low and middle income families in select areas. The term “rural” is somewhat misleading, however, as borrowers are often surprised by the range of properties qualifying for financing. If you don’t have enough saved for a down payment and you’re not set on living in the heart of a major city, you may find you have options available through USDA rural housing loans.
USDA loans are unique in that there are somewhat strict guidelines regarding both borrower and property eligibility. Borrowers must fall within certain income guidelines for the area in which they wish to purchase a property. Because these rates differ based on zip code, you may want to work with a Midland Mortgage Corporation consultant when determining eligibility.
In addition, lenders generally require credit scores of 600 and above for financing approval. Fortunately, these programs come with a good deal of flexibility, so you may wind up qualifying despite having a low score, a recent bankruptcy, or having accounts in collections.
USDA loans are deemed rural housing loans, but they often cover properties found in suburban areas. You won’t have to invest in a farm in order to take advantage of their benefits. You may be surprised to find the home you’re interested in is already eligible for one of these attractive and affordable 30-year fixed rate loans. A mortgage counselor can help you find out, or you can head to the USDA’s website and check a property’s eligibility by its address or by viewing a map of the area.
Midland Mortgage Corporation is a USDA-approved lender with access to 30-year fixed rate rural mortgage loans. But is that your best option? Learn more about adjustable rate products now.