For many of us, owning a house is our life’s biggest dream. A common problem that stops us from realizing this dream, however, is the lack of resources. If you live in a rural area and need financial assistance to build a house for your family, the United States Department of Agriculture or USDA mortgage program may just be the right solution. The program helps finance the entire cost of your house, without binding you to the obligation of a down payment. Through this blog post, we have a look at three USDA loan programs that you should know.
1. Single Family Direct Homeownership USDA Loan
The Single Family Direct Homeownership program helps realize applicants, with low and very low income, their dream of building a safe and sanitary house in the eligible rural areas. Also known as the Section 502 Direct Loan Program, it provides you with payments assistance, a type of subsidy to buy, renovate, or repair houses in rural areas. To qualify the household income must be less than 80 percent of the median income of the area and the applicant must not have adequate housing. The potential property shouldn’t be larger than 2,000 square feet or exceed the market value of the total loan limit.
2. Single Family Housing Guaranteed USDA Loan
The Single Family Housing Guaranteed program is for low and moderate income people, who wish to build, improve, rehabilitate or relocate their dwellings in rural areas. The applicant should be a U.S. citizen, a U.S. non-citizen, or a qualified alien, and their income must be less than 115 percent of the median income for the area. In addition, the applicant must be able to afford mortgage payments, and show their interest in meeting the credit obligations on time.
3. Single Family Housing Repair Loans & Grants
The Single Family Housing Repair Loans & Grants or the Section 504 Home Repair program helps applicants, with very low income, improve their homes and make it worth for living. It is a program tailored for elderly people live in sanitary and safe houses in the eligible rural areas. Applicants who are unable to get credit from other sources should only apply for the loan program. In addition, their income should be less than 50 percent of the median income for the area. Qualified applicants can repay the loan in a period of 20 years.
All the above USDA loan programs are there to help people, no matter they live in Texas or any other area, with low to very low income, secure a sanitary and safe house in rural areas. Applicants should, however, analyse the pros and cons of various USDA loans before they decide to chose a particular program. When looking for professional assistance, they must speak to a loan banking officer. These professionals understand the finer lines of the process and can help advice about a loan that would best match your individual needs.