Now more than ever, individuals and families across the US are beginning to learn about the benefits of rural living. In particular, it has been shown that living in a rural community can provide some serious financial and psychological benefits. At the same time, financing the construction of a rural home can be challenging. Luckily, the USDA home loan program provides a solution for those who are looking to buy a rural home without breaking the bank.
As experts in farm loan programs, we’re being asked regularly about the benefits and eligibility requirements of USDA home loans. This article has everything that you need to know!
What Are the Benefits of USDA Home Loans?
Many people who are interested in rural living never pursue their dream because of the prohibitively expensive down payment costs. This is precisely where the USDA home loan program can potentially step in to provide a solution!
The USDA home loan is a zero down payment mortgage program. That means that eligible recipients receive a mortgage through this program without having to make a down payment. They also come with low interest rates, which is an additional benefit for individuals and families that have limited budgets.
Now that we understand the benefits of USDA home loans, let’s now turn our attention to the program’s eligibility requirements.
How to Qualify for a USDA Home Loan
Who is eligible to receive a USDA home loan? The short answer is: any US citizen with limited means who demonstrates a reasonable ability to repay a loan.
Here are the specific qualifications for receiving a USDA home loan:
- Must be a US citizen or permanent resident.
- Need to have a minimum credit score of 640.
- Must be able demonstrate a consistent and stable income.
- Need to be able to repay the mortgage within one year.
- The property that’s being purchased must be located within a qualified “rural area.”
- The property must also be intended as your primary and permanent residence.
- Your adjusted household income can not exceed 115% of the area’s median income.
Start Searching for a USDA Home Loan Today!
At MSF Agriculture, our expert lenders are here to help you find the best USDA home loan for your family and budget. Contact our office today to start searching for the USDA home loan option that will work for you!