It's safe to say that most people have dreams of owning their own home. You and many others reason that the rent money could be better spent toward building equity in a home instead of benefiting your landlord. Unfortunately, the burden of coming up with a large down payment for a mortgage can seem like an insurmountable goal. Fortunately, two loan programs backed by the United States government are available for people just like you. If you are ready to take the next step towards being a homeowner, read on to learn more about USDA home loan programs.
Even though these two loan programs are sponsored by the United States Department of Agriculture, you don't need to live out in the middle of "nowhere" or on a farm to use the program. The purpose of these programs is to encourage development outside of urban (mostly inner city) areas, so the areas targeted for these loan programs include many suburban areas outside of major cities, most smaller cities and towns, and entire large areas of some states. You can view a map and also enter exact addresses to verify coverage of the loan program areas. The eligible areas appear in a darker shade when viewing the map.
Section 502 Direct Loan Program
For those who are unable to produce a down payment, the Section 502 Direct Loan program will interest you. Only one other home mortgage option offers this perk: the Veterans Administration Loan Program. The USDA does require that you have very low-to-low income to qualify, with this figure varying from state to state and county (where the potential property is located).
Guaranteed Loan Program
For those with incomes a little higher, the Guaranteed Loan Program could be right for you. This program differs from the Section 502 Direct Loan by requiring a 10% down payment, which is still far below the amount required by traditional loans.
You may have noted the word "guaranteed" being used to describe these loans. It's important to note that this word simply means that the loans are guaranteed for the lenders. In other words, if you default on the loan (stop paying), the government will pay the lender back. This is actually very good news for borrowers, since banks are far more likely to approve a loan for you, since they know the government is backing the loan.
For more information, contact McKinley Mortgage or a similar company.
How many times have you put off making repairs around your home because you didn't have the money to make them immediately? Have those decisions caused even more repair bills because you waited to make the repairs? I have done this several times in the past, and, oftentimes, not making those repairs have cost me far more to complete because the damage spread. The whole reason I created my blog was to help others find the financing they need to make home repairs without worrying about choosing the wrong type of financing option. Hopefully, my hard-learned lessons will help you avoid the same struggles that I have undergone.