USDA Loans have been designed to cater to the financial needs of an individual settled in Alabama. US Department of Agriculture offers loan to those who belong to middle and lower middle class families to help them buy homes that come under the USDA jurisdiction. These loans may be used to buy a new home in Alabama. These USDA loans help those who desire to possess a home but are not able to afford the same due to financial constraints.
The USDA home loans in Alabama create an incentive for home ownership by way of offering easy to avail home loans. The basic aim is to give an impetus to the economic growth in these lesser developed communities.
Usually the needs of these lower middle class families settled in Alabama are forgotten in the fast paced development witnessed in the other parts of the USA. It thus becomes vital to pay attention to their needs and identify the gaps that hinder their development. Hence, USDA has taken this innovative initiative to offer home loans to those who are settled in Alabama and cannot afford a home.
If these people are able to buy homes with the help of USDA home loans then, the economic growth of these people are sure to improve as home is a property that appreciates and adds to the wealth of the possessor.
Benefits of USDA Home Loan
The USDA home loans are filled with benefits apart from granting financial aid to help buy a home in Alabama. The greatest benefit being that you do not have to pay down payment to buy a home. This feature is indeed a great benefit as paying a hefty down payment is really difficult. This unique USDA loan facility helps you to take care of your other needs by not having to pay a heavy amount as down payment. The loan amount may be utilized in buying furniture or refurbishing the home’s interiors or for any other personal financial requirements. Another significant benefit of the USDA home loan is that it has very low interest rates and is offered at flexible credit guidelines thus making pay back of loan an easy task.
Interest Rates of USDA Home Loans
One vital factor to watch out for in case of home loan is the interest rate. High interest rates usually stop a person from availing loan. USDA is sensitive towards the importance of interest rates and thus offers home loan at interest rate as low as 4%. Although USDA loan rates change daily in accordance with the state specific adjustments, most interest rates are calculated based on your credit score and the loan size. USDA actually sets the maximum interest rate that lenders and banks may offer each day. Thus, if the maximum rate set by USDA is 4% then neither any bank nor lender will be able to offer you loan at interest rate more than 4%.
Eligibility criteria for USDA Home Loan
USDA eligibility criterion for USDA home loan is based on two parameters – the property to be bought and the borrower himself. The property under consideration should be any farm land, any area with a particular number of residents (the same is subjective to the state) and above all should be within the limits of the USDA rural area. Now, considering the individual’s eligibility criterion, the same being he must be a citizen of USA and the person should not possess any home prior to the one being considered. The person should have a credit history that is above the average and has no outstanding debts, bankruptcies and foreclosures on his name in the past three years.
If you wish to learn more about USDA loans and also want to know whether you are eligible to get USDA loan? Then, all you need to do is contact an USDA representative right away!
