Mortgage Monday

The United States Department of Agriculture has produced a mortgage program for families that have an income below average for those seeking to purchase a rural home. Although it has been around for some time, it has become more apparent today in the aftermath of the recession. Due to strict regulations and criteria that come with standard mortgage loans, these USDA programs give those who do not have the opportunity to own a more rustic home the opportunity to obtain one.

Without an initial large payment, this type of mortgage loan allows 100% financing and provides the opportunity to not put people in even more debt. With savings, it gives owners the chance to put money aside for future home repairs or additions.

Most mortgages make it mandatory to have a Private Mortgage Insurance payment for loans that have an initial 20% or fewer down payments. But this type of loan does not require this payment on top of the mortgage payment which also saves. With more money to pay for a low mortgage, it means that their requirements for approval of a big loan are more likely.

Another advantage of USDA mortgage loans is that there is a significantly lower interest rates than one would expect. Surprisingly, it is no more than 1% and with such a low interest rate, there will be a lot of savings for the future. If you live in the country and have low income, USDA mortgage programs are a prime option to buy your dream home.