When we think of buying a new home, most of us rely on the conventional loans. However, USDA loan has also started gaining popularity to the Americans.
Homeownership has now become easily accessible with the availability of this loan. Still, most of the potential homebuyers think that they are not eligible for these USDA Loans. They have also misconceptions on these loans. Now, we have talked about those myths, and you will have a clear idea on the home loan.
USDA loan- It is just for houses and farms in the underdeveloped regions-
The Department of Agriculture has insured this loan. That is why most of us think it to be the loan scheme, designed for the farmers. The borrowers have also a belief that they should buy a house in the underdeveloped sites to get this loan.
USDA loan is available to you to purchase property, located in the rural sites. USDA has included small towns in the list of these rural sectors. These towns are not much far away from the metropolitan regions. You may speak to the lenders to know about the sites, eligible for USDA loan.
Down payment is essential for the loan-
This is another myth of the borrowers. The truth is that USDA loan is one of the best options to help you in getting the fund without making any down payment.
Thus, when you have presently no cash in your pocket, you can apply for the loan. You can easily become the owner of your chosen house. However, you have to know the closing costs for this loan. This cost is applicable while the total financed amount is not more than the property’s appraised value.
Rural Development Loan is not for purchasing investment property-
It is true that that you have to invest the loan to buy a residence for your own purpose. However, there is another better option for you. You may purchase a multi-unit building by investing this loan. In this case, you have to reside in any of those units. For other units, you can look for tenants and earn an amount on every month.
It is essential to read all the guidelines to apply for USDA Home Loans Oklahoma. You will be able to locate the right property and get the loan for it.
High credit score is must to have the USDA loan-
This is another USDA loan myth, confusing the borrowers. The borrowers, having very low credit, keep away from apply for the home loan. There is no strict credit-related rule for availing the USDA loan in the USA. However, it is better to have your credit score, range from 620 to 640. You can try to increase your score while sending the application for the loan.
The higher credit score is also helpful in securing the loan at a very low interest rate. While your score is more than 740, you have a chance of qualifying for loan at an attractive rate. Thus, to get this opportunity, you can think of increasing your present credit score.