There’s nothing better than being able to buy a home within paying a down payment along with 100% financing. Backed by the Agriculture Department of U.S., USDA home loans support people with moderate to low income so that they can buy a home of their own. Since the conventional loan programs are difficult to qualify, this Rural Development loan can help ease the process of home buying.
Get Easy USDA Loans in Ohio
USDA has helped over 1 million people with home-ownership and now you can be one of them. Along with boosting home-ownership, which is the dream of thousands of Americans, USDA helps improve the quality of life and the economic condition of the area.
If you have been hunting for home loan programs in Ohio, you must know that the conventional loan programs have very strict qualification process. Should you fall short on any one of the criteria, your application is likely to be rejected. This is very disappointing for people with low income or first time buyers, who have little ad those who have no savings or a decent credit history.
Easy Qualification Process for USDA Loans in Ohio
USDA home loans are the most affordable home loans with lenient qualification guidelines. Presently two types of home loans are provided, namely:
- Guaranteed home loans
- Direct home loans
To determine families who are eligible to get these loans, USDA has pre-defined some guidelines. USDA has approved lenders working on behalf of them to provide guaranteed loans and USDA secures these lenders so that there is no risk involved. The qualification factors are:
- The borrower must meet income eligibility
- The property must be located in one of the USDA approved areas
- The property must be used as primary residence
- The borrower must have a minimum credit score of 640
- The borrower must be a U.S citizen or a qualified alien
- The borrower must not be barred from participating in federal programs.
- The property must not be used for investment purposes
USDA has set these rules not to discourage people but to identify the families who are in need of such home loans. The best part is, even if the borrower falls short on any one of the criteria there are provisions which can help them secure the loan. Since these are zero down payment loans, USDA needs to confirm that the borrowers are willing to pay back the loan amount.
The funds obtained from these loans can be used for various purposes like repairing, renovation, remodelling, installation of household equipment, etc. Another great thing about USDA loans is that, the closing costs are very low and they can be combined with the loan amount. Ideally, for zero down payment loans, you’ll have to pay high mortgage insurance every month, which increases the monthly amount hugely.
With USDA loans this is very low, so the monthly payments are hardly affected. Moreover USDA home loans are 30 years fixed rate loans so you do not have to worry about fluctuating interest rates. It also offers you opportunities to refinance an existing USDA loans, so that you can lower the interest rates further.
No other home loan program can match the advantages provided by USDA home loans. So if you are still living in a rented apartment, it is time to think about owning a home in Ohio. Connect with us to know more about the USDA loan programs today!