Established in 1991 by the US Department of Agriculture (USDA) rural development loans are designed to help medium income Americans buy a home in rural and suburban communities. Also known as Rural Development Loans (RDL) these loans offer many advantages to clients who are interested in purchasing a home in a rural or suburban town with a population of less than 20,000. For example, they require no down payment, are available for reduced interest rates, and are guaranteed by the government, giving banks and lenders the assurance that they can’t lose. If for some reason the borrower defaults, the government will reimburse the bank for the loan, as long as they have been approved to offer USDA loans. Another good quality is that USDA loans can allow flexible credit standards, somewhat controlled by the bank who is the intermediary. Furthermore, there is a mechanism to roll closing costs into the loan, spreading it out over the monthly payments.
USDA Loan Application Website and Accessibility
The site is designed to inform potential borrowers , determine eligibility for a home loan and to apply for the USDA home loan programs. In order to be eligible for many USDA loans, household income must meet certain guidelines. Also, the home to be purchased must be located in an eligible rural area as defined by the USDA. You can research all this information from this site along with links to the USDA homepage to check qualifying household income and property eligibility tester.
Finding Expertise and Guidance in Applying
Much like any other loan, there are specialists employed by banks who have particularly studied the requirements and advantages to the USDA home loans. Applying for a USDA home loan is easy and secure you can fill out a quick online application or call to speak to a USDA loan specialist to see if you qualify for the program. USDA Loans .Net has all the information you need to know.