Home ownership is the dream of thousands of people living in New Mexico, but there are more pitfalls in the process that anyone can think of. Specifically, people having low to moderate income levels face many hurdles when they decide to buy a home. Most conventional home loan programs have stringent qualification criteria and you need to pay a huge down payment and high interest rates. Low income families struggle to meet these requirements and often, end up losing hope.
But there’s good news for the residents of New Mexico. You can now become a home owner even if you have limited monthly income. USDA has introduced home loan programs that help people with low to moderate income own a home. USDA loans are the most affordable home loan program, since you do not have to pay down payments and you get 100% financing. The Agriculture Department of U.S has specially designed these rural development loans to help rural families with repair, renovation and purchase of home for a better living. Along with providing a safer living environment, these also help in improving the economic condition of these rural areas.
Low to Moderate Income for USDA Home Loans for New Mexico
USDA home loans offer two types of home loans for the residents in New Mexico – Guaranteed home loans and Direct home loans. According to USDA, a moderate income would be defined as the income which is equal to or less than 115% of the average median income of a particular area. Low income would be defined as the income between 50% and 80% of average median income and very low would be less than 50% of the average median income for that particular area.
Only and only if you qualify for these income ranges, you are eligible to get a USDA loan. So before you apply for a USDA loan make sure your meet the income eligibility.
Another advantage of USDA loans for the low to moderate income group is that, people who have had bad financial experiences like bad credit history, bankruptcy or foreclosures can also get a home loan. At times situations are not under our control and we have to take in what comes on our way. Conventional loan programs would not consider this, and things become even tougher if you’ve faced anything bad like that.
But USDA is lenient enough to understand your situation and gives you a second chance. If everything else is sorted out, you have one more obstacle in your way.
USDA would approve a loan for properties that are located in USDA approved rural areas. That doesn’t always mean you have to stay with cows and chickens. Many peripheral areas of New Mexico are listed under USDA approved areas. Any area, whether it is a suburb, rural area or farmland, which has population less than 20,000 will be considered eligible for USDA home loans. If you have any confusion regarding the eligibility, we can help you have a clearer view.
Other Advantage of USDA Loans for Low to Moderate Income Groups in New Mexico
No maximum purchase limit is defined by USDA which means you get the maximum loan amount. Not only this, you can also include the closing cost within the loan amount. Even the seller can contribute towards the closing costs. The monthly mortgage insurance is very low, which means the monthly payments are not very high. So you can never find a better home loan program than this.
It is time now that you consider buying a home and if you do so, we are there to provide assistance. Connect with us via phone or fill out the online inquiry form for further details.
