Jumpstart Home Ownership With the USDA Rural Development Loan
Does buying a house without putting a single dollar down sound too good to be true? While this proposition may seem like a hoax, the United States Department of Agriculture (USDA) Guaranteed Rural Development (RD) Loan allows potential homebuyers to actualize their dreams of becoming homeowners with this incentivized offer.
Pay $0 Down With the USDA Loan
An almost unheard of benefit to both new and seasoned homebuyers, the USDA loan program allows homebuyers to put zero dollars down, and to attain 100% financing. Particularly advantageous to first-time homebuyers who may have difficulty scraping up the funds for an initial down payment, this USDA loan removes a sizeable hurdle toward owning that first home.
Enjoy Flexible Credit Options
Credit is often one of the biggest roadblocks for potential homebuyers. Established credit mandates a history of 3 to 5 pieces of credit that have been well maintained for a minimum of 2 years. Yet the USDA loan program accepts other sources of “alternate” credit, including utility bills, car insurance payments, and cell phone expenditures.
These flexible terms allow borrowers with limited or blemished credit histories to get a jumpstart on the road to homeownership.
Beat the Market Interest Rate
U.S. Department of Agriculture borrowers are offered a major home-purchasing benefit from the government department’s lower-than-market interest rate policy. Unlike conventional financing options, USDA borrowers are offered a low, widespread interest rate that remains unaltered by factors such as a down payment or a credit score.
Say Farewell to Loan Limits
USDA loans do not explicitly provide a written limit in their borrowing guidelines. Instead, loan limit amounts are set in relation to USDA Rural Housing program income limits and debt ratios. While most loans prohibit borrowers from acquiring a mortgage after a certain price point, the Rural Development loan allows potential homebuyers to keep their options open and to not be as limited by immediate budget considerations.
Options Financial Is Here to Help
While this specific type of loan is only available to specific low-density population areas, this is only one of many home mortgage resources available to you through Options Financial. Check out the USDA ELIGIBILITY MAP for qualifying areas.
If you're ready to learn more about whether you qualify for a UDSA program, you will find more details and information here.
At Options Financial, we're eager to help you understand the full range of resources available to you as you search for your new home, so be sure to reach out today!