The New Year is right around the corner and this will be the final post of 2011. People promise to make little and big changes. Losing weight, traveling more and buying a new home are among the popular resolutions. Sadly, the “buying a home” resolution proves difficult to accomplish.

Some people don’t even try because of the misconceptions of home buying. Homeownership is not unachievable, even for people with bankruptcies on the report or low credit scores. Conventional loans have gotten a bad rep for a reportedly extreme down payment requirement—as high as 20%. When in actuality, lenders are accepting 5% on down payments all the time. The Federal Housing Administration Loan requires 3.5%. Other government-backed loans such as the VA loan for active duty and veteran soldiers and the USDA home loan do not require a down payment at all.

The VA loan is restricted to our nation’s honorably discharged and active duty soldiers. However, the USDA home loan is open to all low to middle income persons looking to relocate to a suburban or rural area. The loan program had a successful year when over 130,000 borrowers received the guaranteed rural housing loan, accord to the Los Angeles Times. The loan boasts many benefits and more importantly gives people in the low-income bracket the opportunity to settle down in a new, spacious single-family home.

USDA Loan Benefits

Country and suburban life has a lot of financial benefits. Residents often save money on utility bills and monthly rent or mortgage payments. The USDA loan also helps with the low cost. Their appraisal requirements ensure that a borrower buys the best quality home—which in the long run saves the homeowner money. In addition, the loan has low closing costs, small fees and up 102% financing (the extra two percent covers the guarantee fee).

More USDA Loan Perks Include

- $ 0 Down
- Score 640 or higher on credit does not need a credit explanation on the application
- Low interest
- 30-year fixed rate
- Loan funds can be used for renovation and repair
- Borrowers can use gifted funds for closings costs or other fees

The Process

Three simple requirements determine eligibility for the loan.

1. Home must in an USDA approved rural or suburban location.
2. Total household income may not exceed 115% of median income for the location.
3. Credit check and history demonstrates the ability to afford and pay for the home on a monthly basis.

Although borrowers must meet certain credit and income standards, it’s untrue that one needs a 700 credit score to receive the loan or the benefits that come with it. . History, the ability to pay monthly rates and other financial factors are considered.

As far as location goes, areas right inside and on the outskirts of Marysville, WA are eligible for the mortgage program. Barnett associates and USDA lenders can help borrowers find the exact locations of eligibility.

So, for that New Year’s Resolution, maybe just talking with a USDA approved lender will help with the next big step—becoming a homeowner.

Jasmine Reese is a rural blogger for USDAloans.com, a company devoted to rural and suburban development through lending.

Related posts:

1. USDA Financing: Marysville, Arlington, Lake Stevens & Granite Falls
2. FHA Secure has rolled out for Washington Residents
3. House Key State Bond Financing Program
4. Buy a Home if You Make $ 15 Hour with Zero Money Down
5. Financing for Manufactured Homes