St. Louis, Missouri (April 13th, 2018)- As many people know, one of the most common loans is the Conventional Fixed-Rate Home Loan, which is widely available to buyers. One loan type that most people are unfamiliar with is the Missouri USDA Rural Development Home Loan. This loan is designed for buyers in certain eligible rural areas.
To help better understand, let’s compare the two loan types. USDA loans can only be received if you are in a certain geographical area and for your primary home. A Conventional loan can be used for a secondary or investment home as well, and in any geographical location. Both of these loans have to check your eligibility based on credit history and finances.
Some more information regarding these loans would include that USDA loans do not require a down payment, which is a major benefit. For Conventional Loans, the down payment and fees can vary exceptionally. For conventional loans, insurance is typically required and can be up to 20% of your loan, while USDA insurance can be financed into the mortgage with low monthly payments. With the USDA loan, you can roll in your closing costs and are sure to get 100% financing.
The requirements for the USDA home loan may be difficult to meet but if you are considering purchasing a primary home in a rural area, it is definitely something to consider so you can receive the benefits. For more information and any questions, please contact Liberty Lending Consultants St. Louis mortgage company.
