USDA Loans: Who Qualifies For USDA Loans?
The USDA loan program is designed to help people get into properties that are designated rural by the USDA loan guidelines. In order to qualify for the USDA loan program, the first requirement is that the property is designated eligible by the USDA loan database.
Location of the property is key in qualifying for a USDA loan and it is determined on a property by property basis according to zip code and county. Qualifying for a USDA loan has very similar requirements to qualifying for a FHA loan and it is very much the same process. In order to qualify for the USDA loan program, you will be expected to be able to document your current income, have decent credit and generally show that you have the financial ability to repay the loan.
USDA Loans: Very Popular Loans
Until FHA did away with their 3rd party down payment assistance programs, the USDA loan program wasn’t all that popular. But recently when FHA eliminated all 3rd party down payment assistance programs, the USDA loan has exploded in popularity. Today, many homeowners who are thinking about buying a home are surprised to learn that many properties qualify for a USDA loan even though they can hardly be considered “rural”.
USDA Loan Lenders
The USDA loan program is administered through a network of lenders who are USDA approved lenders. Not every lender is USDA approved and not all lenders have the same level of expertise when it comes to helping you with a USDA loan.
When choosing a lender to work with to get a USDA loan, be sure to shop around so that you not only get a lender who is USDA approved, but also one that has experience and knowledge when it comes to the ins and outs of USDA loans.
USDA Loans: Highlights Of The USDA Loan Program
- The USDA loan program works through USDA approved lenders that lend money that is insured against default by USDA
- The USDA loan program offers up to 102% financing and is a true no-money-down option when buying a home
- USDA loans can be used when buying a new home or refinancing an existing mortgage
- The USDA loan program is “not just for farmers” and many people are able to qualify
If you are interested in learning more about the USDA loan program, be sure to speak with a loan officer at a lender that is approved to lend under the USDA loan program and has experience with helping people finance their homes with USDA loans.