If you seek to renovate or purchase a home, a loan backed by the United States Department of Agriculture (USDA) could help. These loans come in a variety of forms with different requirements. Whether you reside in Winchester, Front Royal, or Stephens City, Virginia, such a loan could be beneficial.
What You Should Know About USDA Loans
One of the top advantages of getting a USDA home loan is that no down payment is required. Those who are eligible for such loans reside in rural and suburban locations.
The U.S. Department of Agriculture backs an array of home loans intended to help those in the average and lower income brackets. These home loans vary, but they all offer low interest rates. The interest rates that come with the loans can even be as low as 1 percent. To qualify for this sort of loan, you need to have a good credit record. Not all kinds of property can be bought with a USDA loan, so you should consult an expert to find out which ones can.
The following are the various kinds of USDA home loans, along with some of the relevant details you should know:
- Single Family Direct Homeownership: This loan allows those in lower income brackets to buy, fix, or renovate homes in rural areas. To qualify, the income of your household cannot be higher than 80 percent of the average in your geographical area. The property you are considering must be deemed modest in comparison with other homes nearby.
- Single Family Guaranteed Housing: This kind of loan can help those with average incomes to buy an ordinary rural home. To qualify, your income cannot be greater than 115 percent of the area average.
- Rural Repair and Rehabilitation: These loans and grants help low income households to repair or make improvements to their homes. Their purpose is to give homeowners the ability to eliminate health and safety hazards from their homes, or to make them more sanitary. To be eligible for such a loan, you cannot earn more than half of the average area income. Also, you must be unable to obtain affordable credit from other sources. You must be at least 62 years of age, and you must lack the ability to pay back such a loan.
- Mutual Self-Help: This type of home loan allows lower income families in rural areas to construct their own homes. To be eligible, these families must otherwise lack the capacity to either purchase clean, safe homes or to build their own. These families are required to supply the majority of the labor during the building process. Their incomes cannot be higher than 80 percent of the area’s average. They must be without access to suitable housing otherwise, and they must be unable to get credit from other sources.
Getting a USDA Loan
If you believe your household meets the USDA loan requirements, talk to a representative of Homespire Mortgage. We offer a simple and straightforward lending process, and we are pleased to serve the residents of Winchester, VA, and the surrounding cities, including Stephenson, Strasburg, and Purcellville.
Contact us today for all your mortgage and refinancing needs!