The primary goal of the U.S. Department of Agriculture (USDA) Rural Development is to make safe and sanitary houses affordable in rural areas. It was started at the time of Great Depression and aims to improve the living conditions in rural areas.
Getting a loan for buying a new house can be difficult and complicated. It is especially difficult to get a construction loan in rural areas, even if you have a high value collateral or high credit score. This makes it tough for anyone to build a house in the rural areas. But, the USDA loan programs make it easy for you to get a loan for constructing a house. In fact, it is one of the few home loan programs that provide you with 100% financing and does not require any kind of down payment.
You can easily get a USDA loan to finance your new construction in USDA approved areas. Currently, there are two types of construction loans being offered by the USDA. One type of loan is strictly available for building commercial properties, while the other type of construction loan is available for building a new home or for expanding your property by putting up additional structures on it.
Finance New Construction using USDA Construction Loan
The USDA loan for constructing a new home can be availed through the USDA home loan department. This loan is perfect for people living in rural areas or for those who want to shift their dwelling to USDA designated area. It provides you with a great opportunity if you want to construct your own house from scratch. You can also use this loan for constructing additional structures on your property and to make necessary repairs for improving your property. The USDA home loan department also offers loans for home improvements. The best thing about this program is that it provide you with 100% financing without the need of a down payment.
To get a USDA loan for home construction, it is vital that your house should be located in an area with less than 20,000 people or in a rural area. Your income level must be lower than the median income designated by the USDA. Your credit score must be upwards of 640 and you should be able to provide proofs that you can easily make the monthly mortgage payments without any delay.
Finance New Commercial Construction using USDA Construction Loan
If you want to start a business in the rural area, then the USDA Commercial Construction loans offer an excellent opportunity to do so. You can use these loans to secure your capital, as this program enables you to get up to 80% financing at a low rate of interest that is prefixed. You can use this loan amount for various environment development projects, expanding your existing business, and constructing a new business property. Most of the banks and loan programs do not provide loans to small or new businesses in rural areas. This makes the USDA loans a coveted option as you can easily draw necessary finances from the program. To be able to acquire a construction loan, your business must be situated in a town with a population of less than 50,000 residents or in a USDA designated rural area.
Our team of qualified USDA loan specialists make financing an easy and hassle-free process for you. To avail the excellent benefits of USDA home loans, you simply need to contact us. You can call us or you can also fill out our online form. We’ll evaluate your case and suggest the most suitable loan option for you and then, we can get things rolling.