Benefits of USDA Home Loan
The USDA or the US Department of Agriculture offers home loan programs to qualified individuals in what are classified as rural areas in the US. This particular home loan program is considered a good offer for the eligible borrower as it has the following benefits:
1. Full financing option
Probably the best benefit that people could get from getting a home loan from USDA is the full or 100% financing option. ‘Â There is no down payment involved to avail of this particular loan program. ‘Â This is especially beneficial to people with literally no money in their pockets but with enough credit standing to be eligible for the loan. ‘Â People who need to buy a certain property for example may avail of this loan without having to worry about initial cash outlay.
2. Easy to apply
The main purpose of the USDA home loan program is literally to help people in the rural parts of the US to have their own homes or improve their quality of life. ‘Â And with this purpose, requirements for loan application are not so strict. ‘Â One doesn’t’ have to have the best credit score to avail of this loan program. ‘Â Although there is still a minimum credit score and people need to submit credit references, the requirements are still very much easy to accomplish even with some credit concerns in the past.
3. Good interest rates
Interest rates offered by the USDA home loan program are among the best in the loan and credit industry. ‘Â This is basically due to the government’s backing and effort to help citizens in rural America. ‘Â USDA home loans are typically offered at a fixed interest rate for a period of 30 years.
One other basic requirement for USDA home loan application is that the property or land for financing must be part of what is classified as a rural area in the US. ‘Â People also need to provide some proof that they are unable to qualify for the traditional loan programs offered by other institutions in order to be considered and eligible for the USDA home loan program.