- Affordable Home Loans for Rural Areas in the US
- No Down-Payment Needed with 100% USDA Financing
- Relaxed Credit Guidelines Take the Pressure Off Your Credit History
- Competitive Interest Rates with USDA Home Loans
One of the major criteria for these loans is that the home must be located in an area that the USDA deems to be ‘rural’ Borrowers should check the USDA website to check if the home they are interested in qualifies under USDA guidelines. https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Fortunately, the home does not have to be located out in the middle of nowhere to be eligible; some homes that are located on the outskirts of major cities also may qualify for a guaranteed USDA loan.
The eligibility map that USDA uses is still based upon 2000 census data. So, some homes on the map that aren’t really rural anymore still may qualify for a USDA loan.
CREDIT GUIDELINES : major benefit of USDA loans in 2017 is flexible credit criteria. It is not necessary to have a good credit score to be approved for a guaranteed USDA loan. Today, the minimum credit score to be approved is 640.
USDA Closing Costs: USDA does allow the seller to pay for your closing costs; the limit is up to 3% of the sale price. Not every seller will agree to do so, but if you have a seller who needs to move his property, you might be able to get some of your closing costs covered.
Therefore, it is possible to get into a USDA loan, and your dream home, with little out of pocket costs!
USDA loans are an excellent 100% financing option for people buying homes in more rural areas. Check with your USDA lender now to see if you can qualify.