USDA Loans Near Plano TX: 5 Things You Should Know About USDA Home Loans
When you think about home loans, USDA loans near Plano TX are rarely the first thing you think of - but they should be. The U.S. Department of Agriculture or USDA offers home loans with 100% financing, low interest rates, affordable payments and no down payments. These USDA loans near Plano TX are becoming more popular every day because they are one of the most cost-effective programs for buying a home in the home loan marketplace. Here are some important things you should know about them:
- Because the U.S. Department of Agriculture sets the lending guidelines for this program, it is also called the USDA Rural Development (RD) Loan program.
- Borrowers must purchase property in USDA-eligible areas to be considered for these loans. To find out if your property is in an eligible area, check the USDA's website for maps or ask a USDA loan officer. Even if you think the area in which you're looking for a home is not rural enough, know that roughly 97 percent of the land in the United States is USDA-eligible so it's worth checking to see if your property is on the USDAâ€™s maps.
- Â In addition to your property eligibility, you must also meet certain credit and income standards to be eligible for a USDA home loan. Because the USDA doesn't require a down payment or a high credit score, qualification for these loans is easier than for other types of home loans. But bear in mind that these loans are not for people with high incomes; they are meant for â€˜moderateâ€™ income earners. The USDA defines moderate income earners as those earning up to 115% of their area's median income.
- Â The USDA allows sellers to pay borrower's closing costs, up to 3% of the sales price. For those borrowers who aren't getting closing costs from sellers, they must produce two months-worth of bank statements to show that they have enough money to cover closing costs. They must, however, not have enough cash to make a 20% down payment on the property as this would make them eligible for a conventional loan and ineligible for a USDA loan.
- There is only one choice when it comes to mortgage length and that is 30-year fixed-rate loans. This is the safest type of loan, which means it is the most successful.
USDA loans near Plano TX are guaranteed by the U.S. government, which means they'll reimburse lenders if borrowers default on the loans. Low risk makes banks and mortgage companies anxious to offer these kinds of loans at low interest rates. So, why not take advantage of a USDA home loan. To find out more, call Summit Funding at (972) 864-3530 or visit www.jziminskas.summitfunding.org.
USDA Loans Plano TX Summit Funding (972) 864-3530
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