Thursday, September 29, 2016

USDA Rural Housing Loans

When you're ready to purchase a home at the Lake of the Ozarks, you have a lot of decisions to make. One of those decisions will involve the type of home financing you will use. There are a lot of different loan programs out there, each with their own benefits and eligibility requirements. In today's blog, your Lake of the Ozarks mortgage lender discusses what you should know about USDA rural housing loans.

What is a USDA Home Loan? 

Rural housing loans, sponsored by the U.S. Department of Agriculture, are designed to make homeownership more affordable for borrowers in rural communities. They can only be used to finance owner-occupied primary residences. In addition, other eligibility requirements include U.S. citizenship, a monthly payment that is 29% or less of your monthly income, with total debt payments not exceeding 41% of your monthly income, an acceptable credit history and a dependable income. 

Benefits of a USDA Home Loan 

For qualified borrowers, a rural housing loan can provide up to 100% financing with competitive rates and terms. Let's take a look at a few of the other benefits a USDA home loan can provide:
  • Up to 100% financing
  • NO monthly mortgage insurance premiums due
  • Low closing costs
  • Affordable fixed rates
  • Flexible credit and qualifying guidelines
  • Available on new or existing homes

USDA Home Loans vs. Other Loans

Compared to other loan programs available, USDA loans typically offer the lowest rates of all. Unlike FHA and conventional loans, USDA loans are backed by a government agency. Due to the USDA guaranty, lenders are protected against loss in a way that loans from other agencies can't provide. The only other loan offering a similar guaranty would be a VA loan.

Whether you're a first-time home buyer or are looking to refinance your current loan, First State Bank Mortgage provides a full portfolio of fixed and adjustable-rate mortgage products. To discuss your Lake of the Ozarks home financing needs and see if a USDA home loan is the best option for you, call your local mortgage lender at the Lake of the Ozarks at 573-746-7211. I'll work with you every step of the way to help you get into that home at the Lake you've been dreaming of! 

For Lake area news, resources and tips on financial services, please 

Michael Lasson
Sr. Residential Mortgage Lender
NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049

Direct:  (573) 746-7211


**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

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