The Pros And Cons Of USDA Mortgage Loans
by Vikram Kumar Digital marketing SEOWhen first hearing about the United
States Department of Agriculture (USDA) loans, one might think about
agribusiness loans rather than home loans. A quick look up online on USDA Home
Loans near me proves this. With a wide list of advantages of USDA Mortgage
Loans, it’s still a surprise how the majority of the nation’s population still
doesn’t know about it. Which makes it often referred to as the best-kept secret
of the mortgage market.
Thinking about what these advantages are? Now that I’ve piqued your interest,
let us go over the advantages and disadvantages of USDA Mortgage Loans.
What are the benefits of USDA
Mortgage Loans?
1. Generous
definition of rural – Firstly, the program is only available to houses in the
rural area. The USDA has set the definition of what makes an area rural as
generous as possible. The USDA’s definition made some suburbs qualify.
According to them rural areas are open country areas which are not part of an
urban area.
2. No
down payment - The biggest advantage of USDA Mortgage Loans is its zero down
payment scheme. This makes the program much more beneficial to the low to
medium income portion of the population since most aspiring home-owners would
have their house purchase plans hampered by the required down payment.
3. Lower
interest rates – Compared to conventional loans, the USDA’s interest rates are
very competitive, one of the most competitive in the market!
4. No
minimum credit requirements – USDA home loans do not require minimum credit
score to qualify. Although the applicants with higher credit score would have
much better terms, applicants with lower credit scores are still eligible for
the program. They only need to ensure that you have no problems paying for your
rent and utility bills.
5. Assumable
– USDA allows for assuming of the property to an eligible buyer.
What are the downsides of the USDA
Home Loans?
Though the program has a lot of advantages, there still are restrictions made
by the USDA to avoid exploitation and abuse of the program. Here are some of
them:
1. Primary
residence only – Vacation homes, second homes, or investment properties are not
allowed by the USDA. The house to be bought must be used as the buyer’s primary
home.
2. Geographic
restrictions – As stated earlier, this program is only available to houses in
the rural community, in areas accepted by the USDA.
3. Income
limits – Buyer’s incomes should not exceed the 115% of the median income for
the area.
Should I consider getting USDA Home
Loans San Antonio near me?
If you want to wish to live in the peaceful city of San Antonio, Texas, now
would be the perfect time to apply for a loan. There is an abundance of USDA
lenders online to inquire on. To get the best out of your “USDA Home Loans San
Antonio near me” search, be sure to ask the right questions to your lenders and
get a sense of trust for them and their offered services.
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Created on Jul 13th 2021 03:06. Viewed 284 times.