Top Benefits of USDA Home Loans in Texas
USDA home loans are loan options that are ideal for Texas families who are looking to purchase a home without an initial out-of-pocket cost. Qualified borrowers can obtain 100% financing through these loans by partnering with selected lenders. These lenders will provide loans with repayment guarantee from the USDA in case of defaults. On top of offering great financial flexibility for borrowers, USDA loans offer other attractive features. Here are some of them:
No down payment
Like VA loans, USDA loans also give qualified borrowers the opportunity to own a home without requiring a money down. In addition to this, the USDA loan also allows borrowers to use grants or gifts on their mortgage.
You have one more reason to pursue USDA loans if you’re leaning towards choosing fixed interest rates when purchasing a property. USDA loans started out providing 30-year fixed interest rates through selected lenders. In recent years, they have also started offering 15-year fixed rate mortgage.
Less strict credit guidelines
Borrowers will still be asked to provide a comprehensive credit history. But unlike other loan types that follow strict credit guidelines, USDA loans may still allow eligible borrowers to qualify for a loan even with a bad credit score.
No maximum purchase price
The USDA will not set a maximum purchase price for the property you want to purchase. Setting the cap will fall under the lender. The lender will be the one to decide on the maximum amount of the loan, provided that the borrower is proven to be capable of repaying.
While USDA loans offer an array of great terms, borrowers need to undergo a screening process to determine if they are eligible for these loans. To qualify, the ideal borrower must have a credit score of at least 620 and the property intended for the loan must be designated by the USDA as a rural development area. Also, the income earned by the borrower must be 115% in that area.
A home is one of the most expensive things you will purchase in your lifetime. Make sure you are making savvy financial decisions by exploring different loan options before choosing the one that suits your unique financial situation the most.
At Texas Lending, we are always ready to help Texas families as they seek the home loan that suit both their preferences and their financial situation. Call our loan officers to discuss USDA home loans in Texas and other loan options.