The USDA loan program was created to support rural development and help families in rural areas become homeowners. This mortgage option is excellent because of its flexible guidelines for borrowers who would otherwise be unable to purchase a home.
If you are considering the USDA program as an option for your home loan, the first thing you need to determine is whether you are eligible for this mortgage option.
After reviewing the information below, call Ebenezer Mortgage at 813-284-4027 so we can answer your questions and help you find the right mortgage option for you.
Once you are certain you qualify for the USDA mortgage program, it is time to gather the necessary paperwork. You will need:
You will need this information to apply for prequalification. It is a free process and you can apply with several lenders to compare them and consider the best option. They will let you know if you qualify for the program, how much you can afford, and what loan terms to expect.
When you choose the best option among the available lenders, you will need to apply for pre approval. The process of pre approval is similar to prequalification but is paid, involves a thorough examination of your financial information, and gives you a guarantee that the lender is willing to work with you if you get pre approved.
Afterwards, you need to find the house you want to buy. A Real Estate Agent will show you options that suit your needs and budget and help you deal with sellers. Once a seller accepts your offer, the house needs to be appraised. The lender will approve the loan only if the house is located in an eligible area, meets the USDA property standards, and is priced at or below its appraised value.
Next comes the underwriting process, which can take more or less time depending on your personal situation. If your credit score is less than 620, your loan will have to undergo manual underwriting, which requires more paperwork and takes longer. After this step is done, you only have to close the deal and move in.