Home Loans By Nicole Newton

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USDA Loans

Helps moderate- to low-income borrowers purchase a home in a USDA-eligible area. You must meet certain income limits to qualify. Some USDA loans do not require a down payment for eligible borrowers with low income.

What are USDA Home Loans?

Rural Homebuyers

They are mortgages issued by approved Rural Housing Service (RHS) lenders like Trinity Oaks Mortgage, nationwide. They are a very popular option for eligible rural homebuyers due to the significant savings and benefits they offer due to the loan being guaranteed by the USDA.

Affordable

The objective of USDA Home Loans is to help farmers and their families, ranchers, and people living in rural areas prosper with affordable home loans to improve the quality of life for themselves and their communities.

What are the benefits of a USDA Home Loan?

USDA loans offer several advantages over conventional mortgages. The down payment requirements are as low as ZERO percent, leaving borrowers with more money in their pockets at closing. Also, interest rates tend to be lower than they would be on a conventional mortgage due to federal subsidies attached to these low-cost loans.

USDA Loans

The U.S Department of Agriculture (USDA) is the governmental body responsible for providing loans and other services to rural America – which includes farmers and their families, ranchers, and people living in rural areas. The objective of USDA Home Loans is to help people across rural America prosper as they improve the quality of life for themselves and their communities.

What are USDA Home Loans?

They are mortgages issued by approved Rural Housing Service (RHS) lenders like Trinity Oaks Mortgage, nationwide. What’s popular about these loans is that if you meet certain requirements, then you could be approved for 100% financing, more lenient eligibility requirements and competitive interest rates – due to the loan being guaranteed by the USDA.

Who should consider a USDA Home loan?

If you’re a qualified homebuyer who lives in a rural area as defined by the USDA or an eligible Native American Indian and want to buy your own home, then taking advantage of USDA home loans may be right for you!

They are considered ideal for applicants with less-than-perfect credit or limited assets as they help provide maximum financial support to borrowers.

What are the benefits of a USDA Home Loan?

USDA loans offer several advantages over conventional mortgages. The down payment requirements for USDA loans are often much lower than other mortgages, leaving borrowers with more money in their pockets at closing. Also, interest rates tend to be lower than they would be on a conventional mortgage due to federal subsidies attached to these low-cost loans.

How can you qualify?

The U.S Department of Agriculture requires that all applications for USDA debt be processed through local lenders/banks, which is what Trinity Oaks Mortgage does day in and day out for our clients.

To qualify for a USDA home loan, an applicant must meet the following requirements, as determined by USDA Rural Development:

  • The applicant must be a United States Citizen or permanent legal resident.
  • The applicant must have a valid Social Security number or proof of application for one.
  • The applicants’ annual household income must not exceed USDA’s limits. Applicants with incomes higher than USDA limits can still qualify for USDA Rural Development programs, but will likely need to go through an additional approval process.
  • The applicant must be able to demonstrate that they have adequate employment history, verifiable sources of income, good credit or credible collateral.
  • The land must be in USDA zone districts and the borrower must not have an outstanding USDA loan on another property already.

Are there other requirements?

All applicants are required to go through credit counseling prior to obtaining a USDA loan. The applicant will need to attend a USDA-approved housing counselor training session with an accredited housing organization before it can be accepted for processing by Trinity Oaks Mortgage or any other local lender. The goal of credit counseling is to help reduce risk and give homeowners greater insight into their borrowing power.

Are you interested in applying for a USDA Home Loan?

Trinity Oaks Mortgage, one of the area’s leading mortgage lenders has vast experience in dealing with USDA Rural Development loans in Texas. We’re available to answer any questions, help determine if you are eligible and guide you through the home loan process.

Common Questions

The USDA Loan is a mortgage option available to qualified rural homebuyers. USDA loans are issued by USDA-approved lenders and guaranteed by the U.S. Department of Agriculture (USDA).
When you hear that the USDA loan is guaranteed, it is in reference to the fact that the USDA insures a portion of each loan in the event the borrower defaults on their home loan. This backing, or guarantee, is what gives lenders more confidence in homebuyers and the ability to extend favorable rates and terms.
No, first-time homebuyers and repeat homebuyers alike may use the USDA loan.
There are no maximum loan amount restrictions on USDA loans. An individual’s maximum loan amount is based upon their debts, income and ability to repay.
Closing costs vary by lender and location. With USDA loans, it is possible to use gift funds to pay for your closing costs. You will need to ask your loan officer for a gift letter and provide proof of transfer to accompany your loan application.
The USDA offers three refinancing options to for current USDA borrowers: USDA streamline, streamline-assist and non-streamlined refinance. The USDA does not offer a cash-back option. Learn more about USDA loan refinancing here.
With the USDA loan program, qualified borrowers can purchase a home without a down payment, saving thousands of dollars in upfront costs.

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