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What are USDA Loans?

Zero Down Payments Aren’t Just for the Military

The USDA loan program, also known as a Rural Development loan, is a type of government-insured home loan that allows you to purchase a new home with no down payment. This loan offers a variety of refinancing opportunities to qualified buyers, with closing costs that can be covered by either the seller or the buyer. USDA loans also carry the lowest interest rates, and are generally fixed rate loans.

Excited Family Carrying Boxes Into New Home On Moving Day

USDA Loans Are Good For:

If you are looking for homes in a USDA eligible rural area, don’t have too many funds saved up, and plan on living in the home as your primary residence, you should contact one of our Loan Officers to see if a USDA Loan fits.

When applying for USDA loans, there are three criteria that need to be fulfilled:

Creditworthiness. Whenever the underwriter reviews your credit report for USDA application, one of the first noticeable things will be whether you have paid all your previous bills in a timely manner. Even if there are payment irregularities, the underwriter is likely to overlook them if you have re-established your credit during the 12 months prior to your application.

Income. Your income needs to be documented before you make an application for any of the USDA loans. The government requires two years of documented history of your income when you apply for the loan. For students, however, there are exceptions offered to the two-year rule. Assets are not required as collateral against USDA loans. However, if you do have any assets, they could help remove blemishes on your credit report and make a stronger case for the loan approval.

  • No potential out-of-pocket costs
  • No pre-payment penalty
  • Seller contribution up to 6% of sales price
  • 100% gifted closing cost or down payment assistance is permitted

USDA loans are primarily designed for the nation’s smaller, rural communities. The objective is to help such communities thrive by making properties affordable for anyone who wishes to live there. Contact us today and find out if your area qualifies as a designated rural area under the USDA program.

Occasionally, there is a Homeownership Education Requirement that is designed to help future homebuyers navigate the home buying process. When homeownership education is required, a minimum of one occupying borrower must complete the Framework homeownership education course. This course is designed to help you understand homeownership and to help you set yourself up for homeownership success!

Not the Loan You Were Looking For?

Secure your USDA Loan At One of Our Branches

With licenses across the country and local branches in your neighborhood, you’ll find it stressless to trust us with your home financing. All of our Loan Officers are federally licensed. Talking to a licensed Loan Officer is the first step to getting the right mortgage loan. Everybody has different loan needs and your Loan Officer will know which questions to ask in order to best match you with the right loan and monthly payment.  Personalized Help. The Loan Officer will also explain all the steps–from getting started, to locking in your low rate, to closing your loan Because we are a direct lender, if you have any questions during the loan process, you will have one direct number enabling you to get quick answers straight from the source.

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