The United States Department of Agriculture (USDA) provides loans at very low interest rates through various private money lenders. A usda loan is a loan insured by Government with no money down payment. The loan amount is given by the lenders with the repayment guarantee from USDA, in case the borrower fails to repay. These loans are beneficial for people belonging to small communities, rural areas and peripheral metropolitan areas. The loan is guaranteed by the government.
Primary Residential Mortgage, Inc. (PRMI) is a leading private lender specialized in offering USDA loan. PRMI has been in the money lending business for many years. The first and foremost advantage of the home loans of USDA is that there is no requirement for down payment. It has flexible credit guidelines and there is no maximum limit of purchase price. The borrower is removed from bankruptcy for three years and the loan amount can be used for the purchase of existing homes, new construction or foreclosures. The loans issued by the United States Department of Agriculture have low mortgage monthly insurance. The eligibility standards for determining the qualification for the loan from USDA are the county and zip code where the home resides in, the applicant’s current income, credit history and the number of dependents who can be claimed.
A USDA loan is comparatively cheaper than any other types of loans as they have very low rates of interest. No out of pocket cost will be incurred to the borrowers under the loan scheme of USDA. Competitive rates of interests are offered to the qualified borrowers by lenders. The maximum amount of loan to be given to the applicant is decided by the private lender. There will be no change in the private mortgage insurance rate of the loan issued by the United States Department of Agriculture based on the down payment. Alternate trade lines like utilities, rent and so on are accepted by the lenders as evidence of payment history for reporting on the credit in case the borrower has a short credit history. Loans from USDA are mainly home loans. They are mainly aimed for people with low or moderate income and rural areas. The USDA eligibility map is useful to find whether your area qualifies for loan from USDA.
Get more information regarding USDA loan issued by Primary Residential Mortgage, Inc., visit the usdamortgagelender website and make use of the benefits available.