15 Jul The USDA Loans – Are You Eligible To Avail The Home Improvement Loan
The USDA emerged out as a savior for about 140000 families. In the year 2014, it helped these families to improve their residences. The main objective of this program is to improve the quality of living of the rural America and enhance the economy. However, it is important to determine whether the USDA loan is right for you.
There are three main USDA loan programs you must be aware of-
- The direct loans
- Loan guarantees
- The grants and home improvement loans
Gain an Insight of Types of USDA Loan Programs
Under the home improvement loan, the homeowner gets the chance to repair and renovate their home. The package consists of grant and loan. All the low income applicants are eligible for the direct loans. The income thresholds differ by the region of loan. The interest rates combined by subsidies could be lower than 1%. The loan guarantees consist of lower mortgage interest rates. However, if you do not put any money as the down payment, you would have to pay an insurance premium.
The income limit to qualify for any USDA loans depends on the household size and the location. You must consider the USDA table and map to check income limit for the country. These types of loans are used to fund the owner occupied residencies only. There are few other eligibility requirements fulfilled by homeowners-
- You must have the US citizenship
- There must be a dependable income for at least 24 months
- You must have an acceptable credit history. Make sure that no account is converted into collections in the past 12 months.
The USDA Loans and Credit Score
If you have the credit score of 620 or even higher, USDA will provide a much streamlined processing. On the other hand, if your credit score is less than 580, it is essential to meet the stringent underwriting standards. If you do not have the credit score, you can still qualify for the non- traditional references. The utility and rental payments fall under this category.
The USDA loans are offered to the families if:
- The family does not have a safe, decent and a sanitary housing
- The family members fail to secure a home loan from other types of traditional sources
- Their income if below the low income limit
The USDA easily issues the USDA mortgage loans for homes than covers area of 1800 square feet or even lesser. The market value of the residence is lower than area loan limit. Besides this, your location also impact the amount of loan received. The real estate markets of Hawaii and California are quite high. Hence, the loans are pricey in such areas. On an average, the loan limit is around $ 216840.
We at NLC loans help you to improve your homes. We specialize in this field since past decades. You could visit our website and fill our contact page to get in touch with us. You could also call us or send an email. We will reply back within 24 hours.