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Ready For Rural Living? Consider A USDA Loan

When planning experts noticed that some cities were becoming overcrowded, a push to get buyers out into the countryside was developed. The United States Department of Agriculture (USDA) worked with real estate experts to develop loan programs targeted at those who want to live outside of city centers or urban areas. Read on to learn more about USDA loans and find out if one could be right for you.

Not Just Farmland

It's easy to get the wrong idea about the USDA loan program based on the word agriculture. Even though large spreads of land, farms, and places with plenty of acreage are included, the areas approved for USDA loans also include suburban areas directly outside of larger cities and towns. The USDA website offers a map of areas covered by the loan program. This loan program can be used to buy detached residential homes, attached homes (apartments, condos, townhouses, etc.), and manufactured homes.

Income Issues to Know About

This loan program is aimed at those who don't make a lot of money. This presents a refreshing change from conventional loans that require certain levels of income to qualify. In fact, if you make too much money, you won't be able to get a USDA loan at all. The income levels are set by each county in your state and are based on median income averages in that location.

No Credit No Problem

Another wonderful benefit of the USDA program is that you don't have to have anything close to perfect credit to qualify. Credit scores are not part of the loan underwriting process. That doesn't mean that just anyone will qualify, though. You must show that you earn income, have a stable job, and that you are taking financial issues seriously.

While the USDA program seems perfect for young people just starting out, it can be great for anyone interested in living outside of a city center with demonstrated low-income levels. Those of any age, from displaced homemakers to empty nesters might be interested in this type of loan program.

 Another bonus for those who are struggling to qualify for a conventional loan is that you don't have to come up with a down payment to get a USDA loan. If you do, it will increase your home equity and lower your monthly payments, however.

This government-sponsored loan program is only offered by certain lenders. Find out more by speaking with a lender, such as Clift  Enterprises Clift Mortgage, today.