With the current economic meltdown and the drooping job market, it is the middle class and low income families that are the most affected. With a limited income as well as the volatile real estate market it has become almost impossible for the low income families to even think about buying their own home. With the current market scenario this dream surely looks quite farfetched and impossible.
Things you should know about USDA home loans as a First Time Home Buyer
However, there is still hope for all you low income families with the specifically designed USDA loans. USDA direct loans are an advantage for first time home buyers as they allow you to become owner of your own home in qualified rural areas. However, the most important USDA loan eligibility criteria is that the homebuyers must meet the low-income limit set by the USDA and the home that the applicant Is planning to buy must be located in the prequalified rural area and not in a city.
Benefits of USDA Home Loans
There are several great advantages that USDA mortgage plans have over other more traditional type of home loan programs. First and foremost the qualified homebuyers are eligible for zero down payments and there are no monthly mortgage premiums that you have to worry about. And if you are very thorough and meet all the eligibility criteria perfectly then you may even qualify for a subsidized interest rate. With all these advantages beating a USDA loan program is quite a challenge for the other traditional loan programs and it is sure to be a winner for those applicants who meet all the USDA direct loan qualifications.
How to Qualify for a USDA Mortgage as a First Time Home Buyer
The major eligibility conditions that you need to keep in mind are that the property you are planning to buy must be in an eligible rural area and you as an applicant must meet the USDA home loan program’s income limits.