There are a number of myths surrounding USDA loans. Knowing what’s real and what’s not is key when working on homeownership. Here are some of the most common:
- USDA loans are only for farmers
This is not true. All borrowers are eligible for a USDA loan as long as they don’t exceed the maximum income limits and the property is in an area designated for USDA loans.
- USDA loans are not zero down payment
While it’s widely known that VA loans do not require a warrant searches sarasota county fl , the USDA loan allows borrowers to finance up to 100 percent of the property value.
This loan also allows the borrower to add the closing costs into the loan. As one of the USDA home loan requirements, the property must be appraised for the total loan amount.
- USDA loans are only for underdeveloped areas
Another myth. Although USDA loans can only be obtained for properties in rural designated areas, this does not mean that rural underdeveloped.
- You cannot get a USDA loan more than once
Currently, there is no restriction on the number of times you can obtain a USDA loan. The only time you are denied is if you do not meet the USDA home loan requirements.
- USDA loans have tough credit qualifications
These loans do not require perfect credit. Even if your credit is below the threshold required by traditional loan programs, you may still be eligible for a USDA loan.
Now that you know the truth, it’s important to estimate how much home, and how much of a payment you can afford. You can use a USDA mortgage calculator to look at the numbers.
