Our USDA Loan Rates Are Low & Our Process is Quick & Painless
The United States Department of Agriculture (USDA) gives out a variety of loans to help low- or moderate-income people buy, repair or renovate a home in a rural area. Some of the popular types of loans are: the single family direct homeownership loan, the single family guaranteed homeownership loan, the rural repair and rehabilitation loan or grant and the mutual self-help loan. This guide will help you figure out what these loans are and whether you qualify.
Though the terms and details of these loans differ, all offer very low effective interest rates (some are as low as 1 percent) and don’t require a cash down payment. To qualify, you need to have a decent credit history.
We’re here to make the Murfreesboro USDA home loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our FREE USDA Loan Qualifier.
We’ll help you clearly see differences between loan programs, allowing you to choose the right one for you – whether you’re a first-time home buyer or a seasoned investor.
The USDA Loan Process
Here’s how our home loan process works:
- Complete our simple USDA Loan Qualifier
- Receive options based on your unique criteria and scenario
- Compare mortgage interest rates and terms
- Choose the offer that best fits your needs
One of the little known benefits of buying real estate in the Murfreesboro suburbs, the smaller towns and rural areas outside of Tennessee, is that homes in most of these areas qualify for the USDA-Rural Development Zero Down Payment Home Loan That means that under the guidelines of this government-backed mortgage program, the Tennesssee home buyer buy a home without having to make a down payment nor are they required to have a large monthly private mortgage insurance premium payment.
On a $150,000 home, the savings is two-fold:
(1). First, Tennessee borrowers saves $5,250 compared to the down payment required for a FHA loan (3.5%)
(2.) Tennessee USDA Rural Development Mortgage save home buyers $115/month in MI (monthly mortgage insurance). The FHA monthly premium would be $150 while the RD cost only $35
These savings make Tennessee RD Home Loan program a great opportunity for first time homebuyers; helping them qualify for more home for less money.
There are however three main requirements for qualifying for the Murfreesboro Tennessee Rural Development Loan
(1) The borrower must not exceed the annual household income requirements (example. a family of 1-4 must not exceed a household income greater than $74,050 per year.) I recommend a quick phone call to discuss your ‘total household income’ under USDA guidelines.
(2) Second, the borrower must purchase a home in a USDA-RD approved region. I have provided a link where you can by-pass the map and type in the physical address to get instant verification – CLICK HERE to verify a USDA eligible address.
(3) USDA Credit Score Guidelines. The USDA program is about as “flexible” as any home loan program available today. In some cases, borrowers may even qualify with collections or a recent bankruptcy.
Many Tennessee home buyers mistakenly believe that days of No Down Payment or Zero Down home loans are gone. The USDA Rural Development Loan will help many buy a home that thought that dream was out of reach because they did not have the money for the down payment.
If you are interested, I offer all of my clients a Free No Obligation Mortgage Credit Analysis to formulate a clear game-plan for the purchase their new Tennessee home.