USDA Rural Housing Mortgage FAQs
Posted 07/29/2014 by admin
As far as down payments go, there is no minimum requirement. That might be good news for those who can only afford a certain amount of money to put down in the first phase of borrowing. The excellent aspect of USDA/rural housing mortgages is that anyone borrowing can create a financing plan that suits their specific needs.
If you are a first-time buyer worrying you might not be accepted or qualify for a loan of this variety, know the USDA Rural Housing program can be utilized by first-timers and recurring buyers alike. There is also no maximum loan size with USDA. With a proven ability to save and make timely payments, your amount will only be limited by your own financial actions, past and present.
Even if you think you might not be able to obtain a rural housing mortgage from your current lender, the USDA provides a list of lenders to choose from. What is currently available with the USDA mortgage program is a 30-year fixed rate mortgage. At the present time, there are no adjustable-rate mortgages. However, by September 2014, they will make available a 15-year fixed rate for those who qualify.
Closing costs have a reputation for being problematic for some. If you encounter the issue of not being able to afford closing costs, the USDA allows what is known as a gift from a family member or non-relative. As long as you provide a gift letter to go along with your loan application, which you can obtain from your loan officer, you may accept this type of assistance.
One last important factor that goes into being eligible for a USDA rural housing loan is doing your best to maintain a good credit score. It needn’t be perfect, but in order to qualify it is advisable to try to better your credit score before you apply for your USDA loan.
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