Buying a home in Indiana or Washington can be out of reach for many. The huge down payments and high interests aspiring homeowners need to pay can easily scare almost anyone. But if you want an excellent offer on a new house that includes 100% financing, low-interest rates, and no money down, you should look into the USDA home loan program. These loans have benefited thousands of families and millions of people in buying their first house, and you may be one of them.
If you're interested in applying for one, here's what you need to know about this type of loan.
What are USDA Loans?
A program signed by President Franklin D. Roosevelt in April of 1935, establishing the USDA, paved the way for the USDA Home Loans Program to come to fruition.USDA Home Loans was created to meet the mortgage needs of rural homeowners, families, and people struggling to qualify for a mortgage in today's difficult housing market.
While USDA house loans are largely for rural populations, many small towns and suburbs of big cities may also be eligible. So, a USDA loan is just right for you if you're planning to live in the basketball-loving state of Indiana or in "The Evergreen State" anytime soon.
Are you eligible for USDA loans?
The USDA has given requirements and eligibility guidelines for everyone that wants to apply for it. The requirements for you to qualify are the following:
1. You must be a U.S. resident, non-citizen national, or Qualified Alien.
2. The property financed by this loan must be located in one of the USDA designated areas (within an area defined as rural by the USDA). To assess if the property matches, guidelines for further details are provided. If you want to learn more about it, talk to a counselor at one of the Federal Home Loan Centers.
3. The house bought using this loan must be used as a primary home. No second residences or vacation houses of any kind.
4. Decent credit history to prove that you can repay the loan conveniently.
5. Your household's income should not exceed 115% of the AMI (area median income).
6. If you're self-employed, you're still approvable by the USDA, given that you should be able to provide the necessary documents for proof.
How do I find these loans?
Whether you plan to take a USDA Home Loans Washington or a USDA Home Loans Indiana, the way to get one is about the same. Simply search for USDA Home Loans Indiana or Washington online, and you'll be able to find a lender that can help you directly. Talk to them, assess their services, and follow their instructions on the whole process. When you do so, you'll be enjoying living in your dream home and state in a couple of years.