The USDA Loan program has been specially crafted for those who live in Louisiana and belong to the moderate to low income group and wish to buy a dream home of their home without having to pay any down payment. The USDA Loans in Louisiana offer home loans at really low interest rates and requires absolutely no down payment. The loan may be used for a variety of options like, repairing or renovating an existing home, buying a new home to repay an old debt.
The Louisiana USDA loan program was initially conceptualized with a purpose to give impetus to farming and provide economic assistance to the lagging areas in Louisiana. But, the roaring success of the loan program made it more flexible and widespread thus allowing more borrowing flexibility. Now, USDA Loan may be used to purchase rural land, to refinance home, and also to cover costs of important infrastructure and house repairing activities for those who reside in rural areas.
USDA Loans in Louisiana- Qualifying Factors
One of the most important qualifying factors for USDA Loans in Louisiana is that the home to be bought should be located within the USDA designated area. The definition of USDA designated area might differ from state to state but are generally any rural or suburban area or farm land that is situated at the outskirts of a major city and has a population count of less than 25,000 people. Thus, this definition confirms the fact that not all USDA designated areas are situated in the middle of isolated farming lands, but is generally located on the outskirts of big metropolitan cities.
Another criterion to qualify for USDA Loans in Louisiana is that the borrower must be using the home that he desires to buy using the loan. It is allowed to rent out the property or occupy it for a temporary period. The person borrowing USDA loan should have a steady income flow and a stable credit history with no undisclosed foreclosures and bankruptcies in the past one year. The person also needs to have a FICO score of at least 640 to be able to qualify for USDA Loans in Louisiana. To successfully qualify for USDA Loan the candidate should have a steady income flow from a reliable source and should be able to prove that he is capable of paying off the debts.
For more information about USDA Loans in Louisiana, please contact your nearest USDA representative today!
