Are you looking for an affordable way to buy a house in Kansas City? Kansas City USDA loans might be the solution you need. In this blog post, we will discuss the basics of USDA mortgages and how Metropolitan Mortgage Corporation can help you obtain one.
What are USDA loans?
The U.S. Department of Agriculture actively offers USDA loans, which are mortgages backed by the government that aim to assist low to moderate-income borrowers in buying homes in rural areas. Conventional loans have higher interest rates than these loans, making them a more cost-effective option.
The benefits of USDA loans
One of the main benefits of USDA loans is that they require no down payment. This means that you can buy a house with 100% financing. Additionally, USDA loans have lower interest rates than most other loan types, making them an affordable option for many borrowers.
Eligibility for USDA loans
To be eligible for a USDA loan, you must meet certain income and location requirements. Your income must be at or below 115% of the median income for the area where you want to buy a house. Additionally, the property you want to purchase must be located in a USDA-eligible rural area.
The USDA loan application process
The application process for USDA loans is similar to that of other loan types. You will need to provide personal and financial information, as well as documentation of your income and employment. A Metropolitan Mortgage Corporation loan officer can guide you through the application process and help you gather the necessary documents.
USDA loan requirements
In addition to meeting the income and location requirements, you must also have a credit score of at least 640 to qualify for a USDA loan. You will also need to demonstrate that you have a stable income and a reasonable debt-to-income ratio.
Types of USDA loans
USDA loans come in two types: direct loans and guaranteed loans. The USDA issues direct loans, which are suitable for low-income borrowers. Guaranteed loans, on the other hand, are available to borrowers with moderate incomes. They are issued by approved lenders.
Repaying USDA loans
USDA loans are typically for a repayment period of 30 years. The interest rate on your loan will be fixed for the life of the loan, meaning that your monthly payments will remain the same.
Working with Metropolitan Mortgage Corporation
Metropolitan Mortgage Corporation is an approved lender for USDA loans. Our loan officers have the expertise and experience to help you obtain a USDA loan that meets your needs. We can guide you through the application process and help you find the right loan for your financial situation.
If you are looking for an affordable way to buy a home in Kansas City, USDA loans may be the solution you need. With no down payment and lower interest rates than most other loan types, USDA loans can make homeownership a reality for many borrowers. Contact Metropolitan Mortgage Corporation today to learn more about USDA loans and how we can help you obtain one.