If you are living in a rural or lowly populated suburban area, you may qualify for a USDA loan. USDA loans provide low-interest-rate mortgages that are zero-down-payment loans.
What is a USDA Loan?
A USDA loan is a loan from the United States Department of Agriculture that is exclusively for individuals who are farmers or living in rural and lowly populated regions throughout the country.
How Do USDA Loans Work?
Before choosing a loan type that is right for you, it is best to familiarize yourself with your options. USDA loans provide flexible options either as adjustable-rate or fixed-rate mortgages. Even if you do not have upstanding and perfect credit, QuestRock will work with you to find the right solution
With a USDA loan, you can refinance up to 100% of your home or opt to invest in a new home with zero-down payment. With a USDA loan, you will also never be required to pay PMI, or Private Mortgage Insurance, as the loan comes directly from the United States Department of Agriculture.
Features of a USDA Loan
- In many cases, 0% down payment is necessary to qualify for a USDA loan and to purchase a new home.
- No monthly PMI, or Private Mortgage Insurnace is necessary with a USDA loan.
- Flexible terms include 15, 20, 25, and 30-year terms with fixed rates.
- It is possible to pay off your entire mortgage at any time without facing fees or pre-payment penalties.
- There are 5-year adjustable rate mortgage options available.
- It is possible to refinance up to 100% of your primary home’s value with a USDA loan.
- All USDA loans are governed by the U.S. Department of Agriculture.
USDA Requirements and Qualifications
In order to qualify for a USDA loan, you will need:
- To apply for a loan in an area or region that has a population under 35,000.
- To be an individual who is buying a home for the first time.
- To be a U.S. citizen (or a permanent resident/eligible noncitizen).
In addition to standard loan requirements, you and/or your household must also be considered low income as defined by the USDA’s official standards. Your income must also be verifiable. QuestRock will work with you throughout the process to determine income eligibility before pursuing the route of applying for a USDA loan.
You do not need to be a farmer or work in the agricultural industry in order to qualify for a USDA loan. QuestRock’s specialists will help you navigate the application process, even if you are not working in agriculture and have other business plans in your future.
At Quest Rock, we will work with you on an individual basis to help you determine if you qualify for a USDA loan. Our specialists will then work to find you the best possible mortgage rate for your budget, financial standing, as well as your goals in terms of your new home or property investment.
If you are ready to find a home, farm, or piece of property in a rural area or in a desolate region, let QuestRock guide you through the process. If you are a business owner or a self-employed professional, we can help.
Our professionals specialize in handling mortgage applications and processes for those who are self-employed and business owners. Give us a call and contact us today to learn more about how we can help you to get started on your loan application.