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What to Know When Applying For A USDA Home Loan

Those home buyers who meet the loan requirements can choose USDA financing. This is an excellent option for low to middle-income home buyers looking to buy a home in a rural area. The USDA has come up with parameters for the guaranteed home loan program. USDA home loans are ideal for first-time homeowners. This type of loan is backed by the government. USDA financing protects the lender in case the borrower is unable to make the payments. Before you apply for this loan it's better that you have some clarity about USDA loans. This presentation provides valuable information about things you need to know when applying for a USDA Home Loan. Learn more at - https://www.drewmortgage.com/things-to-know-when-applying-for-usda-home-loans/

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What to Know When Applying For A USDA Home Loan

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  1. Things to Know When Applying for a USDA Home Loan

  2. Introduction Low to middle-income borrowers who wish to live in a rural area and meet the income requirements can choose USDA financing, since it's an excellent option. The USDA has come up with parameters for the guaranteed home loan program. USDA home loans are ideal for first-time homeowners looking to build or purchase a home in rural areas. This type of loan is supported by the government. When a lender provides a loan, the USDA financially guards the lender in case the borrower is unable to make the payments. 2

  3. 1. USDA loans may require a small down payment The USDA loan program is developed for residential properties. If you want to purchase a home, it must be in a rural area. If you choose a USDA loan, you might not need a down payment. The USDA loan program makes owning a home possible for rural families, but your income should match the limits to be eligible in most areas in the U.S. 3

  4. 2. One hundred percent of the average income in your area If you are looking to buy a home, you’ll most likely need to choose a financing program to help with the purchase. The USDA home loan is always overlooked when choosing a financing program. However, if you are qualified for this type of loan, you should ensure the property you’re purchasing qualifies as well. On the other hand, the USDA enables you to make up more than a hundred percent of the average income for your area and includes all members of your household. 4

  5. 3. There are closing costs that you should pay There are closing costs you should pay. Some lenders may not demand closing costs, but you get a little higher interest rate. The closing costs will be covered by the borrower. You can also work this out with the seller and if you’re offer is good, they may just cover closing costs for you. 5

  6. 4. You cannot avoid annual mortgage insurance payments You'll be asked to pay mortgage insurance each month and you cannot cancel this insurance. You'll pay it until the loan is completed or until you refinance to a traditional mortgage. 6

  7. 5. The USDA doesn't cover insurance for certain homes The USDA guarantees homes that are safe and adequate in size. They don’t guarantee a loan for a home that is larger than you need. They also typically don’t cover insurance for homes that have swimming pools or other luxurious features. In a nutshell, USDA home loans help borrowers secure low-interest and low-cost financing. 7

  8. Drew Mortgage Associates, Inc. is one of the leading mortgage companies in MA that will help you purchase a home. We connect people with a home loan program that best fits their financial condition. What are you waiting for? Call Drew Mortgage Associates, Inc. today! 8

  9. Read more about : Things to Know When Applying for a USDA Home Loan 9

  10. DREW MORTGAGE BRANCH OFFICES: Drew Mortgage Associates 196 Boston Turnpike Road Shrewsbury, MA 01545 Phone: 508-753-1656 Website: https://www.drewmortgage.com/ Peabody Mortgage Lenders 1 Mt Pleasant Drive Peabody, MA 01960 Phone: (978) 750-1080 Boston Mortgage Lenders 232 Commercial St Boston, MA 02109 Phone: (617) 523-3060 10

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