Buying a new house is a challenge in itself, and it is especially tough for the people doing it for the first time. Looking for the right real estate agent, finding the most suitable homes, choosing the best locations, and most importantly, finding the right financing options—everything taken together can be a daunting and extremely time-consuming process. Of all this, the most difficult part is choosing the perfect first time home buyer loan program for financing your house.
USDA Home Loans—A Ray of Hope for First Time Home Buyers
The USDA loan program is designed by the U.S. Department of Agriculture (USDA) to provide finance to the people living in rural and semi-rural area for buying a new house or for new constructions. It is especially designed for people having low to moderate incomes, so that they can own a safe and hygienic house. This program aims at making home ownership affordable, so that every family in the country owns a house and the quality of living improves in rural areas. Since these loan programs enable you to obtain 100% financing without the need of giving any kind of down payment, this is the best financing option if you are buying a home for the first time.
Since most of the first time home buyers do not have a substantial income and savings, it gets extremely difficult for them to find finances for buying a house. They do not qualify for various loan programs that are available in the market and the one’s for which they do get qualified, requires a down payment of 10-20% along with various pre-closing costs. Most first time home buyers cannot afford such expenses.
What are the Benefits of the USDA Loans for First Time Home Buyers?
- You will not have to make hefty down payment for getting a loan as the program provides you with 100% financing. You will still need some money for funding your escrow account and other things, but that does not include giving a percentage of the appraised value as down payment.
- Rural does not necessarily mean that the house has to be in countryside, many towns and other semi developed areas also fall under the rural category for the loans. To know if your locality falls within the USDA designated areas, talk to our USDA home loan specialists today.
- The USDA loans do not have a lot of restrictions on the type of property you want to buy. Getting a loan for financing a modular home is tough and especially one with zero down payment. But, you can get a USDA loan for these homes as well, thus leaving you with the benefit of choice.
- This loan also allows you to use the funds for minor repairs and improvements needed in the house. And sometimes, the loan amount is also slightly extended to provide you with a little more than 100% financing for repairs.
- Since you do not have to give the down payment, you have extra cash in your hand and might be able to pay off the loan early. This program allows you to do that without giving you a penalty for pre-payment.
Getting a USDA first time home buyer loan has several benefits and it has an easy procedure that makes acquiring a loan effortless and stress-free. If you are a first time home buyer shopping around for the best home loan options, get in touch with us today!