The U.S Department of Agriculture (USDA) is the governmental body responsible for providing loans and other services to rural America – which includes farmers and their families, ranchers, and people living in rural areas. The objective of USDA Home Loans is to help people across rural America prosper as they improve the quality of life for themselves and their communities.
What are USDA Home Loans?
They are mortgages issued by approved Rural Housing Service (RHS) lenders like Trinity Oaks Mortgage, nationwide. What’s popular about these loans is that if you meet certain requirements, then you could be approved for 100% financing, more lenient eligibility requirements and competitive interest rates – due to the loan being guaranteed by the USDA.
Who should consider a USDA Home loan?
If you’re a qualified homebuyer who lives in a rural area as defined by the USDA or an eligible Native American Indian and want to buy your own home, then taking advantage of USDA home loans may be right for you!
They are considered ideal for applicants with less-than-perfect credit or limited assets as they help provide maximum financial support to borrowers.
What are the benefits of a USDA Home Loan?
USDA loans offer several advantages over conventional mortgages. The down payment requirements for USDA loans are often much lower than other mortgages, leaving borrowers with more money in their pockets at closing. Also, interest rates tend to be lower than they would be on a conventional mortgage due to federal subsidies attached to these low-cost loans.
How can you qualify?
The U.S Department of Agriculture requires that all applications for USDA debt be processed through local lenders/banks, which is what Trinity Oaks Mortgage does day in and day out for our clients.
To qualify for a USDA home loan, an applicant must meet the following requirements, as determined by USDA Rural Development:
- The applicant must be a United States Citizen or permanent legal resident.
- The applicant must have a valid Social Security number or proof of application for one.
- The applicants’ annual household income must not exceed USDA’s limits. Applicants with incomes higher than USDA limits can still qualify for USDA Rural Development programs, but will likely need to go through an additional approval process.
- The applicant must be able to demonstrate that they have adequate employment history, verifiable sources of income, good credit or credible collateral.
- The land must be in USDA zone districts and the borrower must not have an outstanding USDA loan on another property already.
Are there other requirements?
All applicants are required to go through credit counseling prior to obtaining a USDA loan. The applicant will need to attend a USDA-approved housing counselor training session with an accredited housing organization before it can be accepted for processing by Trinity Oaks Mortgage or any other local lender. The goal of credit counseling is to help reduce risk and give homeowners greater insight into their borrowing power.
Are you interested in applying for a USDA Home Loan?
Trinity Oaks Mortgage, one of the area’s leading mortgage lenders has vast experience in dealing with USDA Rural Development loans in Texas. We’re available to answer any questions, help determine if you are eligible and guide you through the home loan process.
If you or someone you know is interested in securing USDA financing, let’s talk! Submit the below form and we will connect you with one of our expert Loan Advisors near you.