Are you familiar with USDA loans? 

Many people want to buy a house, but they cannot save up enough money for this purchase. That is when they decide to apply for a home mortgage loan. Thanks to mortgage lenders, many people can accomplish their goal of becoming a homeowner. However, choosing the right home loan program is not easy.

There are many mortgage lending providers out there, and it is crucial to hire someone trustworthy and experienced, such as Moreira Team. You can ask questions about different types of home loans they offer, and pick the one most suitable to your desires and needs.


One of the most popular choices is a USDA loan. It is mostly because the down payment is unnecessary, which is ideal for many individuals without a large enough budget. The United States Department of Agriculture offers it to qualified individuals. However, the condition for getting approved is that you have to buy a property in a rural area. It is for people with stable income, and those who pay all their debts on time.

Before applying, make sure you can meet the housing and revenue guidelines. You can choose from two categories of these mortgage loans – direct and guaranteed. Only USDA offices offer the first alternative. If you are interested in the second option, visit one of the eligible home mortgage lenders. If you want to know more, you may find information on Moreira Team USDA loans useful.

To get approval, your income has to be lower than the amount limit the USDA has established. You can use this mortgage loan for buying both new and existing houses. Just make sure they are located in an area the United States Department of Agriculture considers rural. If they approve your request, you can get 100% financing of the appraised value of the house you want to purchase. Another fantastic thing is that you can ask the seller to cover the closing costs for you. This and the fact that there is no down payment means that you can buy a house without any money.


Besides the opportunity to apply for a home mortgage loan without putting any cash down, another benefit of getting a USDA loan is a lower interest rate. These obligations are usually the same, or even better than with VA, FHA, or conventional mortgage financing. Also, there is no prepayment penalty.

You can choose between a 15 and a 30-year term, with fixed rates. The required mortgage insurance is also small; it is 2.5% of the sales price up front and .5 to 1% of the principal amount each year. If you want to get approval, you should have a credit score of at least 640 to qualify. Also, you need to provide a mortgage lender with a proof of income, and stable employment. Maximum debt-to-income ratio allowed is 41%. If you think this home loan program is perfect for your situation, check if you meet the necessary requirements. If the answer is yes, apply, and wait until they approve your request. After that, you will be able to buy a house in a rural area that you have always wanted.

  • Jake Henry
    I am a freelancer from London, who loves dogs and barbecuing at home.

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