Rural Development USDA Home Loans - What are they?
The US Government offers special financing for low to medium income individuals purchasing homes in rural areas. This program allows 100% financing, closing costs can be rolled into the loan, and borrowers can have lower credit scores than other programs yet still qualify.
USDA Home Loans – Which areas qualify?
USDA home loans are targeted towards rural areas. The qualifying areas change every year so the best thing to do is contact your local USDA home loan specialists or consult the USDA website. We here at Supreme Lending are specialists with this program and look forward to providing you excellent assistance, please call or email anytime. If you’d like to check out USDA’s qualifying website you may access it at this link: http://eligibility.sc.egov.usda.gov
USDA Loans – Intelligent Affordability or the New Subprime?
There’s no doubt that the US housing market
has suffered in recent years. Several reasons exist for this but
certainly the subprime mortgages, 100% financing, no doc, stated
income era had a lot to do with this downturn.
In all of 2007 there were 35,000 USDA guaranteed loans and in just the first 9 months of 2009 there were 120,000! FHA and USDA loans have become the new alternative for those who don’t have perfect credit and don’t want to put much or any money down. I question the intelligence of any 100% financing considering all that we have been through in recent times. Especially considering buyers can also roll all their closing costs and prepaids into the loan as well. Buyers truly have little to no equity holding them to that mortgage payment if or when times get hard.
On an optimistic note, it’s nice to see that there is a loan program available for those who are deserving of home ownership but may not have the means. Also, we could definitely use the home sales for our economy right now!