USDA loans, or mortgages that are insured by the U.S. Department of Agriculture, make buying a home more affordable. The government backing allows mortgage lenders to offer lower interest rates and favorable terms, and many Tulsa residents have capitalized on the financing opportunity.
The purpose of this loan program is to promote homeownership in defined geographic areas. But contrary to what many people think, buying an agricultural property or house in a remote region isn’t a requirement. The federal agency considers areas with a population of less than 35,000 to be non-urban or rural, and properties in northeast Oklahoma that fit that description can usually be financed with USDA mortgages. Loans are arranged through local mortgage loan lenders.
Why consider a USDA home loan? For starters, qualified home buyers can finance 100 percent of the purchase price of an eligible property while securing reduced mortgage insurance premiums. Low- and middle-income borrowers have an easier time getting approved for this type of mortgage, and the loan program features flexible credit score requirements. Furthermore, aside from VA loans, USDA loans are the only other major zero-down home mortgage option.
With no down payment required, better-than-average interest rates and the opportunity for 100 percent mortgage financing, taking out a USDA home loan might be a smart way to make your dream of homeownership a reality. For an expert opinion and answers to your questions about mortgages available to home buyers in Tulsa, Oklahoma, contact the mortgage company experts at PRMI today!