The Advantages of a USDA Home Loan
Are you considering purchasing a home? If so, you may be considering the type of home loan that is right for you. One option worth considering is Usda Mortgage Loans in Jacksonville FL. These are considered the subprime mortgage option. The USDA Rural Development Department offers borrowers a direct mortgage loan, as well as a guaranteed loan, which is backed by the United States government, similar to the VA or the FHA loans.
These loans were initially designed for helping rural individuals become homeowners. The mortgages are able to be used for financing a number of different types of properties, from the traditional single family home, to multifamily properties and some businesses. Additionally, the USDA provides grants for a number of different development projects.
The USDA loan is available for purchasing, renovating, refinancing, repairing or even the relocation of a home. What many people do not realize is that these types of guaranteed loans provide 100 percent financing to those who are income qualified, which makes them as close as you can possible gat to having a subprime loan. The only difference is that you will have a low and fixed interest rate as well as payments.
Why Make USDA Loans Your First Choice
The USDA backed mortgage offers a number of advantages. It offers one hundred percent financing, which makes it one of the most desired loan programs that is still available today. The only other program that offers this type of financing is the VA loan program, as well as the transactional funding for individuals who are flipping houses.
Another Appealing Factors Of The USDA Loan is the fact that it comes with no down payment. Opting for this type of loan will mean the possibility of including your closing costs, or using gift funds and grants, which is something that the majority of other loan programs will not allow.
You might even qualify if you are using non-traditional credit and you do not have to have pristine credit to be approved. While you do need a minimum of a 620 to a 640 score, you can use credit references such as utility bills, insurance and cell phone payments to build your credit further if you do not currently have very many other sources.
Additionally, the USDA direct home loan interest rates are some of the very best that you will find and are often better than the conventional rates offered with other types of mortgages.