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It has not only helped them to buy their dream homes but also improved their living conditions. If you are a first time buyer with a moderate income then the USDA mortgage loans gives you the opportunity to buy homes of your own choice. Unlike other financial companies, which demand a high down payment and high interest rate, USDA comes with policy of zero down payment and cost-effective loan.

Different types of USDA loans:

USDA offers you low interest rates, 100% financing and zero down payment. Let us take a look at the two different types of USDA loans.
Direct home loans: Direct home loan, as the name suggests, states that the funds are being directly approved by the USDA. No lenders are involved in these types of loans. In order to avail their direct home loan benefits, visit your near local USDA office.
Guaranteed home loans: being one of the most popular loans in America, Guaranteed home loans provide their funds through USDA approved lenders. These lenders are backed by the government and the government are in charge of compensating the losses. It involves less risk. The lenders are ready to offer USDA loans on their won will. In order to avail the guaranteed home loan benefits, visit any lender who works with USDA loans.
USDA mortgage loans are especially available for those who have a low to moderate income. They have their own eligibility guidelines and qualifications which help USDA to filter out families with those who have sufficient income to finance their own houses. Some of the eligibility guidelines are mentioned below.

Property eligibility: whenever you are buying any property and availing the USDA loan, make sure that the property is located within the USDA approved rural areas. Because USDA finance only houses located in rural areas. They do not finance for an existing mobile loan. Only properties that are used as the primary property and not for investment purposes are financed by USDA loans.
Income eligibility: the most important criteria for availing USDA loans are that you must have a steady source of income. This ensures that they can repay the loan within a certain period of time. Prior to filling loan application, you should have a history of 24 months steady employment. Total Debt and PITI for the borrower should be 41% and 29% of the total monthly income respectively. There is a maximum income limit for the area, the borrower must qualify all these criteria before applying for the loan.
Credit eligibility: you must have a minimum credit score of 640 to avail their Loans. All the bankruptcies should be settled within 3 years. Repetitive late payments are not acceptable.
Borrower’s eligibility: USDA finances only those families who are the permanent citizen of U.S. non-resident co-borrowers are not applicable to avail their offer. The borrower or the applicant must live in the home which the USDA has financed. All first time buyers and repeat buyers are allowed to avail the USDA loans.

The decision to purchase a new car is a big and important decision; whether you are purchasing a new vehicle to move to the college, starting off with your first job or expanding your family. As the upfront cost of purchasing a new car is high, it is always a good idea to explore your options. You may either opt to lease a car or buy a vehicle. Leasing a car may provide you with the option of low monthly payments, however, leasing is not for everyone and may not suit every financial situation. Therefore, if you are a college student who is just starting out or a bad credit buyer, read on to understand the different nuances of leasing vs. buying a car.

Need a Car: Is Leasing the Right Option for You?

The following points will help you decide if you should lease or buy a car when you make your next purchase.

1. Long-Term Benefits

Many people focus on monthly payments instead of the total cost of the car. The option of leasing a car seems inexpensive in the short-term due to low down payment amount and affordable monthly payments. However, if you consider the long-term perspective, you may be liable to pay charges such as excess wear charge, charges for exceeding certain miles, late charges, etc. On the other hand, buying a car is a cheaper option as you pay a good down payment amount in the beginning and are liable to only make monthly payments without any hidden charges. From the cost-effectiveness angle for a college going student, purchasing a car seems like a sensible decision because you get to keep the car as long as you want. On the other hand, leasing a car involves paying a steep depreciation cost every time you lease a newer model.

2. Personal Choice & Customization

The personal choice of driving a car and customizing it according to your requirements gets eliminated when you opt for leasing. Leasing a car means choosing a vehicle from the options available with the leasing company. Alternatively, if you buy a car, you not only get to choose your favorite car model, make and year, but you also get to customize your car according to the design in your mind. When you set out to purchase a new car for college, you can opt for an older model in order to gain maximum rebates. The same option becomes non-existent while leasing a car. Therefore, purchasing your own car gives you better option than leasing a car.

3. Stringent Approval Process

A person who is suffering from bad credit history will have a tough time getting approved for a leased car. Majority of the leasing companies require you to have a spotless credit score and stable source of income. If your financial condition is strong, only then you will get to enjoy a lease agreement with the benefit of zero down payment or low interest rates. For instance, if you have a credit score of 680 or lower, your credit score is considered sub-prime and it will result in a higher interest rate while leasing. However, while buying a car, if you are willing to make a hefty down payment and find a co-signer, you can qualify for an affordable auto loan. Even in worst cases, many dealers can help you with bad credit auto loans.

Lease Less, Buy More

As for different financial situations of young individuals or those who have a bad credit history, purchasing a car fits the bill and seems like the sensible choice. Remember to clear your past payments, get a valid co-signer with a good credit score, look for shorter auto loans terms and put good amount of money down. Once you know that purchasing is the right way to go about it, you can start to get the customized car of your choice ready.

Roosevelt when he signed the Executive Order7027. The USDA Rural Development loan plan was made in order to help the families to relocate and issue emergency loans to the farmers. They used to administer the USDA home loan program for rural housing.

What is USDA loan program?

USDA loan program is one of the most affordable and cost-effective loan programs which many Americans are unaware and are taken aback by the name itself. Are you planning to buy a home? But you don’t have the money? USDA loans help you to get the advantage of 100% financing with zero down payments and low closing costs. If you do not have much savings or your income is low such that it cannot afford to pay down payment for a loan, then USDA home loan is an excellent option. The U.S department of Agriculture supports and insures USDA loans. This program has a repayment schedule where you do not have to give any pre-payment penalties. Your loans get approved without any counselling and all first time as well as repeat buyers can avail their loans.

What are the USDA loan requirements?

There are some of the rules and regulations you need to follow according to the USDA loan department. Some of them are discussed below.
The first and most important criteria to be financed are that your property should be located in one of the USDA designated rural areas. There are several Federal Home Loan Centre Counsellors who would guide you to determine whether the property falls under USDA designated areas or not.
The USDA loan term is for 30 years and at a fixed rate.
If your property is a primary residence, taking USDA loans are applicable for you. They do not finance for investment properties or second homes.
Both sellers and lenders can contribute towards the closing cost. The only criterion is that the closing cost should not be more than 6% of the total sales price.
Being a buyer, the applicant must maintain a decent credit history. You must be eligible to depend on the debt-to-income ratios. This is necessary so that you are able to repay conveniently.
Closing costs are allowed by the USDA itself. You do not have to worry about it.
Not more than 115% of the area median income is allowed for the homebuyer.
In order to avail the USDA loans, you should qualify all of their guidelines and requirements. These requirements were made in order to provide support to the families and help to avail a clean and decent dwelling. According to USDA, you can only buy property in the present in the rural areas of the country.

USDA appraisal

Are you unsure about the eligibility to USDA loans? There is a pre-qualification available from the lenders. All you need to do is submit your estimates of finances, your assets along with other information. Before you purchase home loan, an appraisal is required in order to show the current market value of the property you are buying. There is a appraisal management company which looks after all the appraisal of the USDA home loan.