A USDA loan provides money to individuals purchasing homes in rural areas. Typically, these individuals have low to moderate income to their names.
If you’re seeking to purchase, build, improve, modify or rehabilitate a rural property, a USDA loan is the tool you’ll need to get this done. Lenders also receive a sense of protection in that they receive a 90 percent lending note when they provide money to users. This reduces their risk of extending an entire loan to an individual and ensures that they’ll receive a good portion of the funds back should the buyer ever default.
How Do I Qualify for a USDA Loan?
If you’re looking to apply for a USDA loan, you’ll need to meet certain criteria, starting with your income. You can qualify for the loan if your income doesn’t match the average of the area you’re living in or buying, but you will have to make enough money to cover the payments each month. This includes insurance and any taxes.
In addition, you’ll also need adequate credit to qualify for the loan. You’ll have to agree to take up residence in the dwelling or edifice you are purchasing. This means that you cannot rent it out to another party for income. The home must be your primary residence.
USDA loans are only available to citizens of the United States, and you cannot have been barred or disqualified from federal loan programs. You must also meet all credit obligations by the time the sale is done and complete, and you must select a home that matches USDA guidelines.
What Is the Purpose of a USDA Loan?
A USDA loan was designed to give low-income individuals a chance to own property. The program is meant to prevent discrimination from lenders and assure that everybody gets their due when applying for a home loan. If you don’t have enough money to your name, a USDA loan can potentially put you and your family in a home fast.
In addition, USDA loans ensure that rural areas always remain occupied. This keeps the property values of these areas in steady shape, especially when most buyers are more likely to seek homes in suburban areas.
Are You Looking for USDA Loans in Kansas?
If you’ve found a home in a rural area and you need help obtaining USDA loans in Kansas, please get in touch with us. At A1 Mortgage, our experts are trained to find the best USDA loan options for our customers, and they can do the same for you.
Call us for an estimate. We’re waiting by the phone to serve you. All you need to do is call. Thank you for considering us.