Are USDA loans the best?!

If you are a first time buyer, I urge you to first start with pre-approval. This should sound pretty repetitive by now if you have read my previous blog posts. The pre-approval process ultimately tells you which loan is best for you as a consumer. The real estate agent can't really tell you that information, we know all about loans though and the specifics per each type of loan.

The loan types are, conventional, FHA, VA, and USDA. These loans can be further broken down into fixed-rate loans, adjustable-rate mortgages, jumbo loans, and more.

Questions that help a consumer when they are debating on which loan option to use are questions like, where do I want to live? and how long do I plan on living here?

Many of my client's first questions about loans start with the USDA loan type. Jasmine is the USDA loan the best option? Can you tell me what area would qualify for a USDA loan?

Why is the USDA loan type so popular you ask? Well for one USDA loans require $0 down payment! Also, if a homeowner defaults on their mortgage the USDA pays back a portion of the money lost to the lender. Sounds like a no brainer right?

In order to qualify for a USDA loan you need to make sure the EXISTING property you are considering is eligible. This can be done by going to the USDA eligibility site and typing in the full property address. It will tell you in "green" if the home is eligible or in "red" that it is not. It's that simple. Another determining factor of eligibility is the household income limits that you must not exceed for the program. Anyone living in your household with income will need to be included when calculating your household income for eligibility, even if they are not going to be on the loan. The income limits are different for every county and do depend on family size.

Most often if you have an average credit score and decent credit history the process of approval can be easy and quick. Even less than perfect credit can be approved with understandable explanations and current payment histories. Would you like to find out if you qualify or maybe schedule a consultation with an experienced lender? Contact me directly!

More Questions? Need My Assistance? Call or Text 919-922-8123 or Email Jasmine@TeamAndersonRealty.com I Look Forward To Hearing From You!

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