If you’re interested in a USDA loan but not sure where to begin, let us help. At Starboard Financial, we know buying a house is a major life decision. And we also know that, without the right financial partner, it can be an uncertain endeavor. But, not to worry. Our team at Starboard can help you throughout the entire process. We’ll walk you through all of your loan options and help you determine which one works best for you and your individual situation.
If you’re wondering about whether or not a USDA loan is right for you, here are a few details:
USDA stands for the United States Department of Agriculture. USDA Rural Development loans provide assistance to borrowers, giving low- and moderate-income households the opportunity to own a primary residence in a rural area. When looking for a USDA loan, there is often confusion between the Rural Housing Guaranteed Loan and the Rural Housing Direct Loan.
USDA Guaranteed Loan — This type of mortgage allows rural borrowers to get a loan with benefits that aren’t available with conventional loan programs. The government funds a portion of the loan but applicants must work through an approved lender. Potential homeowners can qualify for this loan if they have an income of up to 115 percent of the median income for the area.
USDA Direct Loan — This loan is for low income individuals who wouldn’t otherwise be able to secure funding for a residence from another source. The government directly funds these borrowers. Applicants can have an income below 50 percent of the area median income or an income between 50 and 80 percent.
When you’re first getting started with the loan process, the best approach is to contact us at Starboard so we can start you on the journey. Whether you work with our team in either of our offices in Gilbert, Arizona or Chicago, Illinois, we’ll make sure you apply for only those loans for which you are qualified.
Whichever loan is right for you, we’ll help you apply for and close it, quickly. Give us a call today and let’s get started.