The Lincoln Home Loans team connects people with financing to achieve their dreams. We understand how important and special the process of purchasing a home is to you, and we are here at every step of the way. USDA loans are privately financed, government-insured loans with fixed rates and great terms. Lincoln Home Loans in Nashville is here to determine if you are eligible for a USDA loan and help you compare it with other financing options for which you qualify. If you are looking to purchase a new home in Nashville, Memphis, or Knoxville, contact us today to learn more about your USDA home financing options.
The Ins and Outs of USDA Loans
The United States Department of Agriculture Rural Development (USDA RD) is a division of the government that insures loans for qualifying candidates purchasing homes in rural areas. The primary type of loan we provide is known as a Single Family Housing Guaranteed Loan. USDA loans have great terms for candidates who qualify, including 100% financing with no down payment.
USDA loans are a type of non-conventional loan. That means they are backed, in part, through the US Federal Government. There are several types of non-conventional loans, another popular one of which are VA loans. USDA loans are uniquely designed to promote rural development in certain areas for people with low to moderate income. They may also be used to refinance a home, provide energy efficient upgrades, improve accessibility for family members with a disability or to purchase essential household equipment and appliances like carpeting.
Although they are insured through the government, they are funded entirely through approved private lenders. They have competitive interest rates and 0% down payment because they are low risk to us as lenders. If a borrower defaults on his or her USDA loan, the USDA reimburses us 90% of the loan value.
In addition to offering great rates for nonconventional loans, the government insurance for USDA loans also allows us to be more flexible in qualifying borrowers.
Eligibility for USDA Loans
USDA loans are not available to everyone. There are requirements both for the home buyer and for home that is being financed.
As a qualified USDA home loan recipient, you must show that:
- You are a US citizen, non-citizen national or qualified alien
- You are financially able to make your loan payments
- You will live in your newly financed home as your primary residence
- Your income falls beneath certain limits for very low to moderate income as determined by the in which you live
- You can make mortgage insurance (PMI) payments in addition to your monthly expenses
- Have acceptable credit history (credit requirements are flexible depending upon your circumstances)
The home you purchase using a USDA loan must exist within certain rural zones as designated by the USDA. It will need to undergo property review and appraisal and meet safety and sanitary requirements before the loan can be finalized. Our team will show you eligible rural areas in which your loan can be used and help you evaluate potentially qualifying homes. You can also check the USDA website to determine if the property is in an eligible area.
Home Sweet Home with a USDA Loan
Today is the day to start the path toward homeownership. Even if you thought it was impossible to get financing for a place of your own, you have options to consider. Lincoln Home Loans is here to guide you through the process of exploring USDA loans. We provide a full spectrum of home financing solutions throughout Nashville, Memphis, Knoxville, Clarksville, and the many surrounding Tennessee areas.
