Well, if you are living in South Carolina and looking for a home, you are in the right place. Here, we are going to have a detailed conversation about the USDA home loan and everything that comes with it. It will help you to opt for this loan. The U.S. Department of agriculture issues this loan for the people living in rural areas. However, 97% of America falls under the definition of rural regions. So, there is a huge possibility that your area is also eligible for the USDA loans. |
Benefits of USDA loans • Zero down payments • Low mortgage rates • Low PMI (mortgage insurance) • Finance, which is more than 100% of the sales price. • Options of fixed rates are available for 15 and 30 years. • Credit score of 640 is required • Almost all of the U.S. is eligible for this • Easy to qualify compared to the other mortgages.
Requirements of the USDA home loans • Meeting; the income limit requirement, is necessary. • You must be a citizen of U.S., qualified alien, or non-citizen national. • You have to show that you are willing to pay the debt and meet the debt obligations. • Inhabit the property as a primary residence of yours. • Well, the home must reside in an eligible area. • Make sure that you are working with an USDA lender. • You must have a satisfactory credit score for this.
Property eligibility of the USDA home loans • New-constructions • Single-family home • Condos approved by HUD • Townhomes • Modular homes approved by FHA • Planned Unit Developments (PUDs)
USDA loan limits
Well, the boundaries of the USDA loan depend on the place you are living in. It is the median home prices of that specific area that determines the USDA loan limits.
Who are qualified for this loan?
• People who have very-low-income, which is less than 50% of the area’s median income. • The must be the titleholder of the property. • You have to show with the usability so that you can receive the loan somewhere else. • You must live in a rural area which is defined by the rural housing loan program. • To get this loan, you must be at least 62 years old.
How much money will you get if you avail this loan? • The maximum loan amount that you will get is $20000 • The maximum grant that you will get is $7500. • Besides, the grant-eligible borrowers can qualify for a loan, which will be reaching up to the amount of 27500.
Credit score requirements for the USDA loans
Recently, the U.S. Department of Agriculture has changed the needs of the credit score a bit. Right, you must have a credit of 640 FICO if you want to avail the USDA plan. Earlier, the requirement was less credit history.
All of these loans are governed by: • The housing act of 1949 as amended, 7CFR, Part 3550. • HB-1-3550 Direct Single Family Housing Loans Field office handbook.
Streamline refinance program by USDA
Well, this program was launched by the USDA in the year of 2012. It is crafted for the people who are paying higher interest rates than the current rates. • You must have a USDA home loan currently. • You have to be present on your mortgage. • The refinance must consist of net positive. • There is no option of cash-out financing.
These are all the things that you need to know about USDA Home Loans South Carolina and USDA Lenders .
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