USDA loan guidelines
In case you have been thinking of owning your house, it is about time you made your dreams come true. There are very many home loan options from which you can choose from. All you need is to choose the best lender in the land and you will do away with monthly rent. Usda loans texas is one such kind of a home loan which you can opt to apply. The loan is insured by the government which makes it one of the cheapest home loans in the country. The good thing with the USDA loan is that you do not need to pay a down payment in order for you to qualify. This therefore makes it not only cheap but also very convenient and affordable. Below are the guidelines which you need to surpass for you to qualify for a USDA loan.
The home must be your primary residence
For you to qualify for the USDA loan, the home you are intending to buy must be your primary residence. This therefore means that, after you have been given the money buy the home, you must reside in it with your family. This is to avoid you paying rent in another building while you have a mortgage loan to service. In addition, this is to curtail people who are rich and want to own a second or third home from taking the loan, because the loan is tailored for low and middle income families. For first time home buyers, USDA loan is therefore one of the best loan to apply for.
Minimal credit score of 620
If there is one thing that many home loan lenders look out for is the credit score. This is because it determines and screams of your financial behavior and capability. For you to qualify for a USDA loan therefore, you must have at least a credit score of 620. This is to assure your lender that you can be able to service back the home loan that they give to you. Needless to say, USDA loan has a higher credit sore requirement as compared to other loans like FHA and conventional loans.
You can only get it from a USDA approved lender
The USDA home loan is funded and insured by the United States of America department of agriculture. This department therefore has chosen its USDA lenders all across the country. In case therefore you want to get the USDA loan, you are required to only get the loan from approved lenders. This therefore means that you can never get a USDA loan being offered by every Tom and Jerry in the home loans lending sector. You must therefore work with the USDA approved lender, if you are to benefit from this loan.
