USDA loans near Plano, TX might be one of the governmentâ€™s least-known programs to assist people with their mortgages. USDA loans are distributed by the US Department of Agriculture and are meant to help families in rural America buy homes and improve the homes they already have. In addition to providing loan money, the program also offers low interest rates and no down payments. Though USDA loans have these same basic similarities, there are different types of loans. Each of these different types is intended for different incomes, and provide different kinds of aid. The three major kinds of USDA mortgage loan programs are:
Loan Guarantees These USDA loans near Plano, TX guarantee a mortgage issued by a local lender that participates in the USDA loan system. These loans are similar in structure to FHA or VA loans. They allow you to access the same loan interest rate and no down payment, but the loan will come through a local lender rather than directly from the USDA.
Direct Loans Unlike loan guarantees, these mortgages are issued directly by the USDA. They are intended for low and extremely low-income applicants. How low the income is required to be to qualify varies from region to region.
Home Improvement Loans and Grants These consist of both home loans and outright financial awards. They are designed to provide aid to homeowners so they can repair or upgrade their homes. Certain packages can combine both loans and grants, increasing the amount of assistance a homeowner can receive.
It can be difficult to decide which of the USDA loans near Plano, TX will best meet your needs and your ability to repay. Even if a person is able to determine which loan might work best for them, they still need to determine if they qualify. The terms of qualification depend on variables like income, location, credit history, and potential repayment plans. Trying to sort through all of this information to come to a decision about whether or not to apply for a USDA loan can be complicated. In order to make that decision, and to navigate the loan system, it is best to rely on the counsel of someone who has been through the process before. Summit Funding has helped many people understand their loan options and guided them through applying for the right kind of loans. Call (972) 864-3530 today to find out more about the advice and support Summit Funding can offer you to guide you through the loan process.