USDA loans are special loans made to help lower-income families buy or build a home. They are a good option for people who cannot afford to buy a home the conventional way. This article will help you understand how these loans work and how they can help you become a homeowner.
What is a USDA loan?
A USDA loan is a loan endorsed by the U.S. Department of Agriculture to provide home loans to qualifying families.
Who uses USDA Loans?
USDA loans are useful to families who are looking to buy or build homes in rural areas. The USDA determines the eligibility of a family based on income, assets, and location.
How to apply for a USDA Loan?
To apply for a USDA loan, you must meet the USDA income guidelines. You must also provide proof of income.
How much can you borrow with USDA Loan?
You can borrow up to $424,100 for a one-unit home and up to $1,094,625 for a two-unit home. However, this amount differs from county to county.
What documents do you need to apply for a USDA loan?
Here are the documents you need to apply for a USDA loan:
- Proof of income
- Credit report, including credit score
- Income verification