An Overview of USDA Loans
A USDA loan is available for those who meet certain income limits and are willing to live in rural areas. However, this doesn’t mean that you are required to live in the middle of nowhere. Many suburban neighborhoods and others that are relatively close to populated areas qualify. Let’s take a look at other reasons why a USDA loan may best suit your needs.
You May Avoid a Down Payment
There is no requirement to make a down payment when you finance a home through the USDA. Depending on the purchase price of the home, this could mean keeping tens of thousands of dollars or more in your bank account when the purchase closes. However, you are free to put money down if you choose.
Seller Concessions and Other Gifts Are Allowed
A buyer is allowed to seek seller concessions as a way to make a home purchase more affordable. The USDA allows sellers concessions up to 6 percent of the home’s purchase price. Therefore, if the home sold for $100,000, the seller could contribute up to $6,000. There may also be caps on what real estate agents, homebuilders and other interested parties may contribute to make a home purchase easier for the buyer.
Learn More by Talking to a Real Estate Agent
Your real estate agent may be able to talk more about why a USDA loan best fits your needs and budget. Alternatively, you can work with the best Las Vegas mortgage brokers to learn more about the benefits of a USDA loan and any other loan products that you are interested in. Either party may also have insight into any grant or home purchase assistance programs available in your area.