USDA Loans Near Plano TX: 5 Things You Should Know About USDA Home Loans
When you think about home loans, USDA loansÂ nearÂ Plano TX are rarely the first thing you think of - but they should be. Â The U.S. Department of Agriculture or USDA offers home loans with 100% financing, low interest rates, affordable payments and no down payments. Â These USDA loansÂ nearÂ 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. Â 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. Â To find out if your property is in an eligible area, check the USDAâ€™s website for maps or ask a USDA loan officer. Â Even if you think the area in which youâ€™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 itâ€™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. Â Because the USDA doesnâ€™t require a down payment or a high credit score, qualification for these loans is easier than for other types of home loans. Â But bear in mind that these loans are not for people with high incomes; they are meant for â€˜moderateâ€™ income earners. Â The USDA defines moderate income earners as those earning up to 115% of their areaâ€™s median income.
- Â The USDA allows sellers to pay borrowerâ€™s closing costs, up to 3% of the sales price. Â For those borrowers who arenâ€™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. Â 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. Â This is the safest type of loan, which means it is the most successful.
USDA loans nearÂ Plano TX are guaranteed by the U.S. government, which means theyâ€™ll reimburse lenders if borrowers default on the loans. Â Low risk makes banks and mortgage companies anxious to offer these kinds of loans at low interest rates. Â So, why not take advantage of a USDA home loan. Â 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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