Utah USDA Rural Home Loans
The Utah USDA rural home loan program is a mortgage program specifically designed for low to moderate income families looking to purchase a home in a Utah rural area. The process of securing a Utah rural home loan is simple and straight forward, and as long as you have modest income and an above average credit rating, you should have no problem qualifying for one of the best home loan programs in the country. The Utah USDA home loan program has given thousands of families the opportunity to own their very own home and is available to thousands more as long as they know where to look.
What is the USDA Home Loan Program?
USDA Home Loans in Utah were created to help assist moderate to low income households purchase a new or existing home in a rural area. Because it can be extremely difficult for low to middle income households save up enough money to purchase a home, especially in today’s tough economy, this program is essential to help these hard working families achieve the American dream of home ownership. By helping struggling families purchase homes in Utah rural areas, it is also helping to spur economic growth and development in Utah rural towns, which have also been hit hard by this recession.
How Do USDA Home Loans Work?
Now it is important to understand that the United States Department of Agriculture (USDA) does not directly loan out money to qualifying participants but provides a guarantee to USDA lenders that the loan will be covered regardless. This home loan guarantee takes away the risk and uncertainty that comes hand in hand with large home loans and provides lenders an incentive to loan to struggling USDA eligible families. However, if your total household income is below a certain threshold you may be eligible for a USDA Direct home loan which does offer some direct financing from the USDA.
How to Qualify for a USDA Home Loan
In order to qualify for a USDA home loan your prospective home must be located within a USDA eligible rural area. USDA eligible areas are defined as any area that is rural in nature or a town with less than 10,000 residents. However, USDA population restrictions can differ from county to county and this limit can go as high as 25,000 in certain eligible Utah communities. There are currently tons of great properties outside of major Utah cities like Provo and Salt Lake City that are USDA eligible. Utah counties such as Beaver county, Grand county, Millard county and Wayne county have tons of USDA eligible properties as well.
Income Requirements
Because USDA home loans are specifically designed for middle to low income families, there are specific income limits in place. To qualify for a USDA loan your annual total household income cannot exceed 115% of the average median income for that area. If your total annual income is above this threshold you will not be able to qualify for a USDA home loan. For specific county income limits please visit the USDA rural home loan website or contact your USDA approved lender.
