Purchasing your new home is one great achievement. Not having to pay monthly rent can be so relieving. It is almost impossible to purchase your home with your own income because houses are expensive. The USDA or the rural home loans are zero down payment loans given to rural and suburban homebuyers. They help low-income earners or rather the poor borrowers who cannot access a traditional mortgage. Traditional mortgages tend to limit low-income borrowers because of high-interest rates and collateral. If you are in this bracket and you want to buy your own home, you are lucky because there are several mortgage assistance programs for you. The rural home loans program has managed to help struggling families to buy and even upgrade their homes. The advantage of the rural home loans is that they offer very low-interest rates and there are no down payments. It is cheaper for people in rural areas to repay the mortgage as compared to the traditional mortgage. Read on to learn more about rural home loans.
For you to qualify for a USDA loan the home you intend to buy needs to be in a rural or suburban area. This is because the loan is meant to finance homes in these areas and not in urban areas. To determine whether the house you plan to buy is eligible, you need to visit the USDA’s eligibility site. As long as you know the address of the home you plan to buy, you will be able to determine whether you are eligible for the loan. Understand that home you purchase using the loan needs to be your main residence. The good thing about this loan is that the definition of rural is quite broad. As long as your home ranges from small towns to suburbs of metropolitan areas, you may qualify for the loan.