Press Release (ePRNews.com) - SPRING, Texas - Feb 13, 2017 - Zillow.com reports the median value of a home in Texas is currently $162,400, a 7.8 percent increase over the past year. Furthermore, the real estate giant states prices will rise an anticipated 3.9 percent in 2017. Individuals wishing to buy a home in a rural part of the state may find they will benefit from obtaining a USDA mortgage, as opposed to a conventional home loan. USDA home loans offer many benefits that potential buyers should be aware of when making the critical decision as to which mortgage to choose.
“USDA home loans go by many names. A lender may refer to the program as a rural development loan, a single-family housing guaranteed loan program or a section 502 loan, yet they are all the same thing. Furthermore, the vast majority of homes in the country are considered to be in a rural area, according to this program, and many of these homes are found just beyond the borders of a major metropolitan area,” Gerry Nicodemus, spokesperson for AMCAP Mortgage-NHB, explains.
One problem many potential buyers encounter involves finding a way to save up enough money for a down payment on the home. Lenders require anywhere from five to 20 percent of the purchase price of the home as a down payment. Saving up this money often takes time, and home prices may continue to rise, making the task seem insurmountable. A benefit of choosing a USDA loan is the home can be financed at 100 percent, eliminating this need for a down payment.
“The VA loan and the USDA loan are the only two mortgage programs currently available that allow the buyer to obtain a home with no down payment. This allows the buyer to purchase the home of their dreams at today’s price, rather than waiting until they can accumulate the required down payment. Furthermore, the buyer can lock in at today’s interest rate, of concern to many, as these rates do appear to be going up,” Nicodemus continues.
One thing borrowers must consider when determining if this loan is right for them is the USDA eligibility requirements. Individuals need a 640 credit score to qualify and a stable credit history, and the lender does take into account the borrower’s debt to income ratio. Job history will be factored in when determining if a borrower is eligible, and the property must meet USDA guidelines.
“Don’t delay in buying a home, as prices are expected to go up again this year. With many home loan programs available today, including the USDA home loan, borrowers will find they should qualify for one or more programs. Contact us today to discuss your available options, and we’ll help you get into the home of your dreams in a short period of time,” Nicodemus announces.
About AMCAP Mortgage-NHB:
A USDA approved lender, AMCAP Mortgage provides the USDA Guaranteed Home Loan program of borrowers who qualify. The company holds licenses to operate in 20 states and provides a variety of loan options to meet the needs of all borrowers.
AMCAP Mortgage - NHB