What Are USDA Loans?
USDA loans are guaranteed and issued by the United States Department of Agriculture. They offer a 0% down payment for rural homeowners. There are three different loan programs available by the USDA; direct loans, loan guarantees, and home improvement loans. The loan officers at DC Lending LLC in Clark County would be happy to sit and discuss with you the different loan options. We can help explain which type of loan would be best suited for you and your unique situation.
Direct loans are issued directly by the USDA and are limited to low and very low-income homebuyers. The goal of these loans is to provide borrowers who aren’t able to acquire traditional loans an affordable option to buy a home. When the USDA guarantees a loan, it means they are approving it. A local lender, like a mortgage broker or other financial institution, issues the loan, similar to FHA and VA loans. These loan options provide very low-interest rates and 0% down payment options but do require the borrower to pay upfront and monthly MI. The third type of loan is a home improvement loan, which allows homeowners to repair or upgrade their homes. You can combine USDA loans into different packages.
USDA Loan Restrictions And Requirements
Because these types of loans are aimed to help low-income homebuyers, they do have more restrictions than other loan options. There are income and location requirements that vary based on the states and counties. And these loans can only be used for homes that are the primary residence of the owner. Other requirements include proof of reliable income and credit score minimums.
Also, there are specific debt-to-income ratios that are taken into account when getting a USDA loan. The USDA will allow higher debt-to-income ratios for those with higher credit scores. Our loan officers will help you determine if a USDA loan is the best option for you.
Benefits Of USDA Loans
The USDA provides these loans for people who can not otherwise get traditional home loans. The USDA will also issue loans to those who need it more. For people who currently don’t have a safe or sanitary place to live, those who can’t get regular loans, and those whose adjusted incomes are below the low-income limit.
For these reasons, a USDA loan can be incredibly beneficial for certain people. USDA loans are primarily for rural areas, and the USDA determines the location’s eligibility. There are limits and regulations for USDA loans based on state, city, and household size. But our team of loan officers has years of experience working with USDA loans, and they know which cities and houses are eligible for this type of loan.
USDA Loans For Clark County Residents
It can be challenging to learn all of the requirements and stipulations that come with getting a USDA loan. Which is why the loan officers at DC Lending LLC are here to help. Our team has had years of training and experience to support our customers adequately. We are a family-owned company that puts our customer’s needs and financial situations first to find the absolute best loan option for them. Call or stop by our office to talk with one of our loan officers and see if a USDA loan is the right choice for you. We want to help you find a loan that you’ll love.