The home loan that is being provided by USDA has significant level of benefits when compared to other banks. One of the most important benefits is the absence of maximum limit. The low interest rates option being offered by this loan will surely enable borrowers to save large amount of money in the process of building home. The flexible loan repayment option will make it possible to repay loan amount with great ease and convenience. The fixed interest rates being offered by lenders will enable borrowers to have strong control over repayment and avoid fluctuations in this process. Any bank or financial service that is approved by federal guidelines becomes eligible to provide this loan in the borrower's desired location.
The following are the homes that can qualify for the loan:
•2. Existing homes must be structurally sound, functionally adequate, and in good repair;
•3. There are no restrictions on the size or design of the home financed;
•4. The home must not be used for income-producing purposes;
•5. Homes must be located in rural areas. Rural areas include open country and places with a population of 10,000 or less and-under certain conditions-towns and cities with between 10,000 and 25,000 residents.
The USDA Rural Development field offices can determine eligible areas. Moreover, guaranteed loans are subject to the provisions of the Civil Rights statutes, including the Equal Credit Opportunity Act.