Home is everything to us because it is so much more than just a roof or shelter on your head. When you talk about Rural Areas, the first thing that strikes your mind must be a safe and proper shelter because they lack that even when they have a property but not too much of money to make a home on their own. The USDA initiates Rural Housing Loan services for the people in need, for the people in search for home, for the people who want to build a home.
How does Rural Home Loans help the people?
The Rural Housing Loans are loan programs to improve the living standards of the people of the rural areas, because a rise in their quality of life plays a major role in improving the economy of America. Home has always been a dream for the people of Rural Areas who don’t have one, and for some they do have a house, but they don’t own it. So, with the help of Rural Home Loans the USDA is trying to help people have a hygienic, beautiful and clean homes that they can call it their own.
What is the eligibility criteria to qualify for Rural Home Loans?
You should have the citizenship of U.S. A non-resident is not qualified to apply for the loan, not even your co-borrower is supposed to be a non-resident.
The one applying for it is supposed to live in it and nobody having no relation with the loan will be permitted to stay in that house.
Someone who is applying for Rural Home Loans is allowed once he or she qualifies the criteria. But if someone is applying for Home Loans for the second time, then the existing home has to be sold.
A minimum credit score of 640 is a must for the loan to get approved.
A steady source of income is checked upon by the borrower on the basis of the employment history because that is going to make them believe you can repay the loan.
A maximum income limit should be qualified and the amount you pay which includes principal, interest and tax should not exceed 29% of the total monthly income. Also, the total debt should be less than 41% of the total monthly income.
The property you are willing to buy should be within the location of USDA approved rural areas.
Types of Rural Home Loans: -
There are two types of loans being offered by the USDA currently: -
Guaranteed Home Loans: These loans are however funded by the USDA approved lenders, but these lenders are backed by the government. The government walks to take charge when the borrowers default by compensating the losses. Here risk factor is very less so the lenders offer this loan too often without worrying about anything. In order to get this type of loan, you should contact an approved lender who works with USDA Rural Housing Loans.
- Direct Home Loans: These loans do not include any lenders in between, here you directly contact the USDA and they approve your loan when they find eligibility criteria getting fulfilled. For Direct Home Loans, one should directly visit the USDA office.
Home Loans are not everybody’s cup of tea because the entire procedure requires patience, time and money. But with Rural Housing Loan and Rural Home Loans facility, you can afford an ownership of a property, that you name Home.