What is a Rural Development Loan?
A Rural Development Loan (also known as a USDA Loan) is a fixed interest rate, government insured loan that offers 100% financing to qualified buyers. This No Money Down program allows for all of your closing costs to be paid for via financing into the loan or allowing the seller to pay for them.
How do I know if I am eligible for a USDA Loan?
The USDA Loan program is used to finance the purchase of a home or land in a rural area. Most often it is used to help families without adequate housing. All applicants must be able to afford mortgage payments which also include insurance and taxes. Your income range can be up to 115% of the area’s median income. Your mortgage advisor will also take your credit score into consideration.
USDA loan eligibility requirements
Eligibility is determined by three factors:
- Credit Worthiness: Having a solid history of timely bill payment will have an impact on your credit. If you have re-established your credit over the last 12 months you may still be eligible. Collections as well as any open judgements will need to be paid off prior to you closing on your new home.
- Income: As with most home loans you will need to provide a two year history of consistent income and employment to the USDA. If you are a student an exception may be possible. While assets are not a requirement for approval they do help in overcoming any credit blemishes. Your income may not exceed 115% of the area’s median income.
- Location of the property: Your new home must be located within a designated USDA rural area. Your Lenox/WesLend mortgage advisor can check on the USDA eligibility of the property. Surprisingly, there are many locations throughout the country that are eligible for participation in a USDA Loan. Helping our nation’s small rural communities grow by making properties more affordable is the goal of the USDA Loan program.
Why choose us?
We’ll close your loans fast! Our loans close in a little over 30 days on average.
Your Lenox/WesLend mortgage advisor will provide personalized help. We are here to explain the process–from how to get started, to locking in your low rate and closing your loan. Lenox/Weslend is a direct lender, as such; you have a direct number to receive quick answers to the questions that will come up during the home buying process.
Learn more about the USDA Loan application process
We will be happy to walk you through the USDA loan application process and answer any questions that may arise. Get started today.