Prepare a Budget and then own a Home: USDA makes it as easy as it sounds.

Then it’s high time you introduce yourself to USDA Mortgage, a lesser known loan service for the greater good of the Rural population. And, guess what you can ascertain your budget too by simply using the USDA Loan Calculator.

What is USDA Mortgage?

The Mortgages that are guaranteed by the U.S. Department of Agriculture (USDA) are called the USDA Mortgages. There are one of the fewer loans that are still available at no down payment applicable on home purchases. For every rural area that comes under the eligible areas, USDA Mortgage is the best option available for them to buy houses of their own. They have certain limits as far as the income is concerned and eligibility criteria for the rural residents to qualify.
USDA Mortgage Eligibility

USDA Loan Credit Requirements: A person who wants to get USDA loan should show a stable income, a good credit history and ability to repay the loan. Even though there is no minimum credit requirement but a credit score of 640 or above are granted the loan without any doubt. The lender needs to check your credit score, patterns of loan repayment, credit utilization and length of credit history before they apply for a USDA loan.
USDA Loan Income Requirements: Someone who has a stable income is preferred for USDA Mortgage. A lender checks for two years of consistent employment along with income tax returns for verification purpose.
Location Requirements: To know whether your area is eligible for a USDA Home loan, you must check the eligibility map. And, the best part would be if you ask your lender to check whether your preferred location is eligible or not. This loan has been introduced to help rural areas through development so any other area that doesn’t fall under the Rural category is not eligible for the loan. There are some Suburban areas that qualify though. Also, there are population factors to determine the same.
Property Requirements: The purpose of the USDA Mortgage is to provide people having low and moderate income with a safe and sanitary household. So, the basic requirements that you must include are, the house must be the buyer’s primary residence; the house must be having adequate facilities and access to transport, road, water as well as water disposal system.
Citizenship: It is one of the primary needs as the residents of the rural areas must be permanent U.S. citizens.
Employment: A person must have at least 2 years of continuous employment or stable work to qualify himself/herself for USDA Mortgage.
What is a USDA Loan Calculator?

A USDA Loan Calculator is basically a payment calculator used by the USDA to calculate an accurate USDA Mortgage. It is done by accounting monthly USDA Mortgage insurance, homeowner’s insurance, USDA guarantee fee and property taxes. It helps people ascertain their monthly payments that they have to make against the loan they are planning to take. With the help of this, people can draw a budget and then search for a property or home that fits their budget.

Why should you consider getting a rural housing loan?

Do you have a plan of settling down later in life far away from the crowd and traffic? Then the USDA Rural Housing Loan is the right solution for you. The Department of Agriculture in the United States has been issuing easily available rural home loans to people who would like to have a home in such areas. If a candidate fulfils the USDA loan requirements, those eligible candidates can easily get a zero-down payment mortgage for rural and suburban areas. Improving rural life and economy The Rural Development program under USDA has been helping a lot of families to buy new homes or upgrade existing ones to improve the quality of life in the rural parts of America. Instead of overpopulating the already crowded cities, this move will help willing families to shift to greener and less populated areas to have an even distribution. USDA Rural Housing Loan offers very low interest rates and zero down payment facilities to make it even more accessible to a lot of people. If the word home loan seems a nightmare to you because of the hassle usually associated with getting loans approved and then paying the exorbitant interest rates, this should sound like a dream. There are no hidden costs involved and people can get instant loan help at absolutely no down payment if they fulfil the USDA loan requirements. USDA offers home ownership as well as home repair and renovation loans to Americans. It also provides financial help to elderly and low-income families in rural multi housing units. The variety of assistance provided by USDA give you enough reasons to consider applying for USDA Rural Housing Loan. Variety of assistance programs Qualifying for USDA home loan program has nothing to do with your profession just because it is meant for rural America. It simply depends on your income and the location you are choosing for housing. USDA has more than 50 financial assistance programs to uplift the economy and lifestyle of rural America. There are programs for businesses, communities and also for individuals. It works in collaboration with lenders to guarantee easy loans to create opportunities to create multi-family housing units in rural areas. There are loan guarantees and grants for community improvement facilities focussing on health care, education and safety. For instance, many hospitals and community centres have come up with assistance from USDA. The rural housing plan of USDA comes under the financial assistance program for the individuals and improvement of their lives. The plan consists of programs like: -

Buy a property, make a home: Home Help for the Rural Residents

The need to have a house of your own is a wish every person of the rural household wants to conquer and with the right amount of help, yes all of you can. Rural Home Loans provided by the USDA is an initiative to make the economy and standard of living of the rural areas better.

What is Rural Housing Loan?

Rural Housing Loan is a part of the Rural Housing Service offering loans, grants and loan guarantees for single as well as multi-family housing. The idea is to help people build their own homes or upgrade their existing ones. The motive is to encourage the development of the rural areas by helping very low, low as well as moderate income residents buy and improve properties into homes. There is an eligibility criterion for the people to qualify so that they can be granted such loans. Also, this loan is only meant for someone who lives in the Rural area and wants to buy a home in the rural area itself.

Types of Rural Home Loans: -
Single Family Housing Programs: The USDA’s Rural Housing Loan includes the Single Family Housing Program to help the rural communities buy safe and affordable houses in the rural areas. Through this program the USDA invests loan guarantees so as to help the low and moderate income earning population of the rural residents build their homes. This program also includes the self-help housing, grants for elderly home owners and home repairs for the home owners as well.
Multi-Family Housing Programs: The initiative of this type of Rural Housing Loan is to provide safe, affordable, adequate, clean rental housing for all the very low, low and moderate income earning households of the rural areas. The fund generated under this program can also be used for home improvements, repairs and water disposal systems. Overall, USDA provides rental assistance to the potential buyers and eligible residents with their monthly rental costs.
More information about the Rural Home Loans: Myths and Facts to accept

Along with rural areas, there are other areas too that are as much eligible for Rural Home Loans as rural areas, the suburban areas are also eligible.
Rural Home Loans are subject to zero down payments which is also known as the USDA loans.
The income limit of a person should be below the income limit as prescribed by the USDA, as anybody having an income above the limit are not eligible for the loan.
A person who has yet not paid the first Rural Home Loan cannot be eligible for another loan. And, Rural Housing Loan is not restricted to just the first-time home buyers.
You must have a good credit score but in Rural House Loans lower credit scores are generally accepted.
This program has been introduced by the United States Department of Agriculture, so it becomes necessary on the part of the rural residents to find a lender who is qualified enough for the task.
Apart from having a US citizenship, it is important that your monthly payment against the Rural Home Loan doesn’t exceed 29% of your monthly income.