Since the USDA loan is geared towards low-to-moderate income families, they have strict income limits. In our Rural Housing Loanarticle, we highlight a lot of the benefits and what it takes to qualify.Įven though the USDA Guaranteed Loan has no limit on the amount you can borrow, it’s highly unlikely any borrower could get a USDA Loan for more than $300,000-$400,000. The USDA Guaranteed Loan is the most common Rural Housing Loan and the easier one to qualify for. Once the loan is closed then the loan is insured by the USDA. The USDA Guaranteed Loan is a USDA-backed mortgage where the money is lent by USDA-approved private lending institutions (banks, mortgage companies, etc.). The USDA Direct Loan does have set loan limits in place, while the USDA Guaranteed Loan does not. There are two separate USDA Loan programs: direct and guaranteed and each have different rules and requirements. However, one of the many benefits to the Rural Housing Loan, is that it DOES NOT have a loan limit. For example, borrowers looking for a more expensive home - $600,000 for example –don’t have many options and are forced to consider a Jumbo loan as standard FHA and Conventional financing are not options. Loan limits often force a borrower’s hand to go with a certain loan program that meets their desired financing amount. These loan limits apply to single family homes but can be higher for multi-family and homes located in designated high cost counties. At the time of publishing this article the loan limit for Conventional loans throughout the country is $484,350 and FHA is $294,515. Nearly all loan programs in the country have limitations on how much you can borrow.
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