Being the second most populated state in the U.S, Texas has a mixed occupancy. Along with cities and metropolitan areas, Texas has a number of towns and rural areas. For such a populous state, it is evident that people would be in need of home loans every now and then. There are hundreds of loan programs that the state has to offer, but not all loan programs are designed to support people who have moderate or low incomes.
Being able to find any home loan takes nothing, however, finding a loan that suits you everyway takes a lot of research and is time consuming. Not anymore. The Agriculture Department of U.S identified this need and introduced the USDA loan programs to support people who would not get funding from other sources. With help of the USDA home loans, you can buy a home anywhere within the USDA approved areas across the U.S. Offering tons of benefits, there’s no other loan program like USDA home loans that works in interest of the borrowers to this extent.
Buying a Home in Texas with USDA Loans
Whether you have a moderate monthly income or a very low income, USDA provides financing for everyone. With the Guaranteed Loan, Direct Loan (a.k.a section 502 loans) and USDA Repair and Rehabilitation Loan, you can purchase a home, repair an existing home or even build a new home. Though the USDA loans are referred to as “Rural Development loans,” you don’t have to stay in farmlands. City outskirts, suburbs, and fringe areas of the state are included in the USDA approved areas.
In Texas, you can find a number of great locations falling within the USDA designated areas. The main attraction of these areas are the fact that they are a perfect blend of a quiet and serene country life with the modern facilities of the city.
If you are planning to make Texas your home, connect with us today to know more about the amazing benefits of USDA home loans.
Refinancing Loans with USDA Home Loans
One essential benefit that USDA offers is the excellent refinancing options. If you have an existing USDA loan and you want to refinance it, because your financial condition has changed, you can do it anytime you wish to. Refinancing has a lot of benefits like lowering the interest rates, lowering monthly mortgage payments and most importantly, builds home equity
So how do you build home equity by refinancing a mortgage?
Many borrowers choose to refinance their loans since they can opt for shorter mortgage terms. This might mean you’ll have to pay higher monthly mortgage payments, but if your financial condition has improved, this won’t bother you much. The benefit – you’ll build equity much faster and the total interest that you have to pay for the full tenure reduces considerably. Larger mortgage payments mean you pay more towards the principal and this way you can repay the loan faster.
So if you had a 30year adjustable rate mortgage which you are able to refinance at 15year fixed rate mortgage, you save a lot and you repay the loan faster. So ultimately you are the one who benefits. If you have any questions regarding refinancing with USDA, we’ll help you get them cleared.
Why Build Home Equity?
Home equity is the difference between the current market rate of your home and the loan balance. So it is the actual amount of home you own. Equity is an asset and the more equity you build, the more you’ll increase the net value of your asset.
A portion of the mortgage payment is used towards the loan balance and the rest towards the interest costs. As the loan balance reduces, your equity increases. Many people refer mortgage payments as ‘Forced Savings’, since you are indirectly increasing the value of your asset. You don’t have cash in your account but you have the ‘Equity’.
How does Equity help you?
- Sell your house and you get cash for your equity
- You can use the equity to buy a new house
- You can borrow cash against your equity, so you have cash in hand instantly.
To know more get in touch with us today!