Benefits of a USDA Rural Development Mortgage
USDA Rural Development Mortgages are excellent opportunities for low to very low income individuals to secure a home loan or get money to fix up or develop an already existing rural property. USDA rural development mortgages provide support for individuals that might otherwise be unavailable and are important programs for helping rural communities grow.
USDA Rural Development mortgages help to boost rural economies by providing affordable financing for home buyers or homeowners looking to develop their existing rural properties. These developmental mortgages are often critical for families looking to develop a new housing project, develop their farmland, or improve outdated construction or sewer systems. USDA rural development loans are typically set at 30-33 years and is eligible based on the family’s income.
Advantages of a USDA Rural Development Mortgage
USDA rural development loans offer numerous advantages from traditional home mortgages. USDA rural development loans cover up to 100% of the cost of the mortgage and are excellent opportunities for those who qualify to get home loans for minimal costs. A major advantage of a USDA rural development loan is that they have some of the lowest interest rates of any mortgages available and require no down payment. USDA rural development loans give first time homeowners excellent opportunities to buy or fix up a rural property and have some of the lowest closing costs on the market. USDA rural development mortgages also allow for flexible credit guidelines and require no mortgage insurance.
Eligibility for a USDA Rural Development Loan
To be eligible for a USDA Rural Development mortgage you must have a decent credit score, typically 580-620, no foreclosures in the past 36 months as well as no bankruptcies over that time period. You must have no outstanding judgments against you over the last 12 months and no outstanding collection amounts. Your total adjusted income must be within the HUD limits pertaining to the county and city that your property resides in. USDA rural development mortgages not only can give you the piece of mind of having an affordable mortgage with low interest rates, but also have super low closing costs and allow for a variety of flexible payment options.