Did you know that the United States Department of Agriculture provides homes loans? They do and if you and the home you are bidding on qualify, you might see yourself in that Oviedo real estate property you’ve been dreaming of!
USDA Home Loan Program
In the last few years, there has been a move toward urban districts and surrounding suburban housing. Because of this many rural communities have begun losing their residents. This flight out of rural areas can make or break a small town, depending on its status.
To help make rural areas more appealing to home buyers, the USDA offers home loans that are not only appealing to potential residents but also to an area’s rural community. For example, there are rural areas that lie just outside a large city, such as Oviedo real estate that is just northeast of Orlando. Oviedo real estate offers a ton of potential for home buyers who find they cannot afford Orlando luxury home prices.
In a case like this, Oviedo real estate is a perfect option. It is a thriving town, along with areas that are rural enough to qualify for the USDA home loan program.
Why to Consider USDA Loan Program
A home loan like this may offer options for first time home buyers who find it hard to be approved for a loan or to gather the amount of money required to place for a down payment.
The USDA has a couple of loan programs available along with a few qualifying factors that future applicants must meet. There are 2 home loan programs that fall under the USDA Rural Development Program:
Single Family Housing Guaranteed Loan Program
This program assists approved lenders in providing low- and moderate-income households a chance to buy their own piece of property. The properties must lie within eligible rural areas and the home buyer must make the home, like Oviedo real estate, their primary residence.
Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers.
Under this program, applicants must meet the following criteria:
- Income-eligibility must fall within specified limits
- Use the property as a primary residence
- Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
- Be legally eligible to incur the loan obligation
- Must not have any reason to be banned from participation in federal programs
- Must be able to meet credit obligations in a timely manner
- Purchase a property that meets all program criteria
Single Family Housing Direct Loan Program
This program is for anyone who is looking for housing but whose income is considered low or very low for the area where they are hoping to buy. The program is looking for individuals that show an ability as well as a willingness to repay the debt.
Other qualifying factors that must be met:
- Must have the legal capacity to obtain a loan
- Must be willing to use the property as his or her primary residence
- Must meet citizenship or eligible noncitizen requirements
- Must not have any reason to be banned from participation in federal programs
- Must be unable to obtain a loan from other resources
Properties financed with direct loan funds must:
- Be no more than 1,800 square feet or less
- Have a market value that is within the normally applicable area loan limit
- Not be designed for income producing activities
- Cannot have in-ground swimming pools
Find Oviedo Real Estate Properties
If you are interested in finding the latest properties that are available in Oviedo real estate, visit Berkshire Hathaway HomeServices Florida Realty.
* Photo credit: Gil C / Shutterstock.com
