If you want to save money on your mortgage, you may want to consider getting a USDA loan. In some cases, these loans can really help you save in both big and small ways. There are plenty of other loan types, but it’s important to consider exactly what kind of property you’re trying to get and what you want to do with it. From that point, you can work with a lender to discover which loan option will be the best choice. If you find that a USDA loan is going to give you the best value when you’re trying to buy a new home, than it’s the loan you should choose to go with. No loan is going to be perfect, and there may be a perk to one loan that you won’t get with another. Still, you have to find the best loan for your needs, so you can get the highest possible benefit from that loan.
1). How much property can you get?
One of the important perks of a USDA loan is that it’s designed for more rural options. For some loans, lenders really aren’t sure what to do with acreage. They can handle small lots and properties up to a few acres, but if you’re trying to get something bigger than that they simply don’t know what to do with that. Much of the reason behind the confusion is that lenders need a good appraisal they can use to find out what the property you want to buy is valued at. By focusing on comparable properties, it’s easier to come up with a good value. However, if you’re buying something that’s more unique it can be difficult to find anything comparable. With that in mind, a USDA can save you time and aggravation, not to mention lender application fees, because this kind of loan is designed to be used on the type of property you’re looking for.
2). What are you going to grow?
By buying a house with a lot of land through a USDA loan, another way you can save money is to cultivate that land and do something with it. Some people start farms, and others simply use the land for their own needs. They might raise a garden, raise a cow, or have a chicken coop for fresh eggs. There are many choices with a rural property, and if you grow and raise a lot of your own food you can save some significant money over supermarket prices. Many people also feel like living off the land that way is healthier, too, which could help you save on doctors’ visits, medical procedures, and prescriptions, since you may not need as many of them. There are many other factors that contribute to good health, of course, but it’s possible that growing your own food on a piece of land you bought with a USDA loan could help.
3). Can you save big versus city prices?
Since a USDA loan isn’t designed for urban or suburban environments and homes, you’ll have to buy something rural. That can be another way you’ll save a lot of money with this loan, since rural prices tend to be much less for the amount of land and size of house you receive. In some urban areas, it’s almost impossible to purchase an actual house. There are big apartment buildings downtown, and it’s very crowded. Out in the country you don’t have any of that, and you generally pay a lot less for the space you get. If you want to save big over the prices charged in cities, moving out to a rural area and using a USDA loan to buy property can really make a significant difference in your finances.
4). What about down payment assistance?
In the purchase of a home, the down payment is important. For many USDA loans, that’s less of an issue. There are a number of options to put very little down, and even some options where you don’t have to put any money down at all. You won’t have any immediate equity like you would with a down payment, but you’ll also not have to take money out of savings or an investment in order to use it as a down payment on your property. That means you can leave your money where it is and let it work for you, instead of needing it for the house.
5). Are taxes lower in rural areas?
By choosing to get a USDA loan, you can see that you’re getting a great home at a price and interest rate you feel good about. You may also get the benefit of lower taxes. Rural areas typically have lower tax rates. Even if you have a lot more land, you could see taxes that are lower than what you’d have in the city. That’s important, because it’s another way that you’ll save with a USDA mortgage, and that can keep you smiling as you enjoy all the space you have in and around your new home.
2 Point Highlight
If you want to save money on your mortgage, you may want to consider getting a USDA loan.
By choosing to get a USDA loan, you can see that you’re getting a great home at a price and interest rate you feel good about.
