USDA loans are designed to support individuals and families having low monthly income and facing problems obtaining financing from any other sources. Oftentimes, you might face rejections when you apply for home loans because of reasons ranging from low credit score to less financial stability, and so on. USDA mortgages are designed to help you get financed for a new home despite your low financial condition.
Enjoy living in locations without worrying about your budget
USDA mortgage programs ensure that people in the rural areas enjoy better facilities and the economic conditions are improved as well. Better communities and better facilities mean people would be attracted to live in these areas and the investments will increase, thus improving the economic condition of the rural areas. Features like less stringent credit requirements, 100% financing, zero down payments and lowest interest rates means you can stay in great neighborhoods without having to face a huge financial burden.
Everything you wanted to know about USDA home loans in San Antonio
Even though the USDA loans are the most affordable and lenient home loan program and offers many advantages to its borrowers, many people are not aware of these loans. People who have heard about USDA loans do not know what it is all about. So to help everyone in San Antonio figure out how helpful and affordable USDA loans are, here are the answers to some frequently asked questions about USDA home loans.
1. How much down payment do I have to pay?
A: This is the most difficult part for home buyers. USDA loans are an exception from other conventional loan programs and require zero down payments. You are eligible to get up to 100% financing.
2: Do I need to be a first time home buyer to get USDA loans?
A: No. USDA loans are available for previous home owners also.
3: What are the restrictions on buying a property?
A: USDA finances properties that are located in the rural areas. Ideally small towns, sub-urban areas and fringe areas, where the population is less than 20,000, are considered eligible by USDA.
4: What are the USDA loan fees?
A: Borrowers have to pay upfront fees, the Funding or Guarantee Fees for USDA loans which is 2% of the total loan amount and this can be combined with the loan. A monthly mortgage insurance is also levied which is 0.5% of the loan amount. These are very low compared to other loan programs and this is the reason why USDA loans are so affordable.
5: Do I qualify after foreclosures and bankruptcies?
A: Yes borrowers with foreclosures and bankruptcies also qualify for USDA loans but they have to be settled 3 year prior to loan application.
6: What is the maximum amount that is can borrow from USDA?
A: USDA does not define any maximum loan amount. The maximum amount that you qualify for is determined based on your monthly income and debt-to-income ratios.
7: What if I have subprime credit scores? Do I still qualify?
A: Unlike other loan programs, USDA supports subprime borrowers. Though the approval process for subprime borrowers is tough, it is not at all impossible.
8: Does USDA provide refinancing opportunities?
A: Yes USDA provides excellent opportunities to refinance an existing home loan provided the prior loan was also financed by USDA.
9: What types of properties are eligible for USDA?
A: The property to be financed by USDA should be used as the primary residence. Variety of properties can be financed through USDA and these include planned unit developments, condos, single family homes, manufactured homes, etc. you can also buy existing, new construction or foreclosures.
10: What types of loans are available with USDA?
A: All USDA loans are fixed rate loans. You can get a 30 year or 15 year loan term with a fixed rate.
We’ve tried to cover most of the common questions pertaining to USDA home loans. If you have further questions or you wish to know more about how you can avail these loans in San Antonio, call us today!