Buy Your First Home In America With USDA Home Loans
With home prices and mortgage interest rates being at their all-time lows – this is probably the best time for purchasing a new home. As a matter of fact the rate of homeownership for a first time home buyer has drastically come down during the last couple of years as most buyers have been scared of investing in new properties for reasons like an uncertain economy, high mortgage payment rates, lack of job security or poor credit records etc. But in spite of these factors it is always a better idea to have a home of yourself than living in a rented accommodation for your entire life and with the now available first time home buyer programs, purchasing your first home is never as difficult as most people consider it to be.
No requirement of down payment, ability of financial cost closing and better interest rate than the FHA loans have made USDA home loans offering the best opportunity of buying your first home in America. This is also known as USDA Rural Development Guaranteed Housing Loan and in reality is a mortgage loan that is offered by the United States Department of Agriculture to rural property owners. The USDA home loan differs from the traditional mortgage loans offered in the USA in several ways like – it requires no down payment and may finance up to 100% of the value of the property and the loan program also allows consideration for various expenses like child care. Additionally as a loan applicant you are also required to purchase a property that is located within the USDA home loan footprint and he must also have an income of up to 115% of the median income of that county. But you should also remember that investment properties are not eligible for this loan and the property you are planning to buy must also be an owner-occupied one.
Requirement of no down payment and most competitive interest rates are the two major factors that make this first time home buyer loans really special. Compared to it, FHA loan, which is also the most common type of government loans, requires the loan applicant to make a minimum down payment of 3.5% of the total property value and also involve pretty costly premiums for mortgage insurance. Being more flexible a USDA mortgage requires only a very small annual fee along with 2% of the loan amount as upfront premium which can also be rolled out into the mortgage and thus it gives home buyers the chance of getting financed against 0% down payment. As the Department of Agriculture map hasn’t been updated for a very long time –many regular suburbs are still considered as rural areas and properties in those areas are still eligible for USDA financing. But the USDA is planning to update its eligibility map soon and that is why now is the best time for seeking USDA home loans and to make your dream of owning a home come true. A lot more authentic information on this type of housing loan is available online with websites like FirstHomeBuyers.net.
ABOUT THE AUTHOR
FirstHomeBuyers.net has helped thousands of first time home buyers to achieve the dream of owning a home. They provide the best first time home buyer programs, tools, tips, and information on the steps in buying your first home.
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