USDA 502 Financing
Why USDA 502 Financing?
The USDA 502 Rural Housing Loan program is a government-backed mortgage loan program administered by the United States Department of Agriculture. This program has many benefits and has helped many families obtain their dream homes.
No Down Payment
One of the biggest advantages is that it does not require a down payment. This advantage is particularly helpful for individuals or families who may not have enough funds to cover a down payment.
Income Limits
To qualify for a USDA 502 loan, a borrower must satisfy specific income limits determined by the median income of the area and the size of the household.
Low Rates
USDA 502 loans offers competitive interest rates to help borrowers save money in the long-term.
Fixed Rate Loans
Traditional mortgage rates are subject to fluctuations, whereas USDA 502 loans feature a fixed interest rate that remains unchanged throughout the loan's duration.
Rural Eligibility
USDA 502 loans also require that the home you are purchasing is located in an eligible rural area defined by USDA. Most often these homes are built in smaller towns, villages, rural communities, and can vary by state and region.
Flexible Credit Requirements
USDA loans may be more lenient towards lower credit scores, allowing those with less-than-perfect credit to still be eligible. However, full credit approvals are to be done by USDA loan packagers.
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