USDA
Make your dream of owning a home a reality
Low to no down payment options
Competitive interest rates
Flexible credit requirements
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USDA
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1800-725-9946
Make your rural homeownership dreams a reality.
Low down payment options
Competitive interest rates
Flexible credit requirements
888-549-1005
Call for a Free Mortgage Saving Report
No Credit Checks Required
Start with our Mortgage Approval Tool!
Start with our Mortgage Approval Tool!
Our Service Commitment
No Hidden Fees: We believe in clear and upfront communication about all costs associated with your mortgage.
Tailored Solutions: Our advisors work closely with you to find mortgage solutions that are customized to your financial situation.
Tailored Solutions: Our advisors work closely with you to find mortgage solutions that are customized to your financial situation.
Get Expert Advise, every time from a licensed loan officer with a suite of products to choose from.
Our Team strives to deliver excellence, reach us day or night about any of your mortgage questions, we’re here for you when you need.
Working with us or just thinking of it, we will always be honest and transparent. No sales targets means way better service!
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Across multiple states our Licensed Loan officers will help you from the
application to the funding and beyond.
We work on your schedule, with streamlined technology and support staffing, your mortgage request will always be a priority!
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What is USDA Loans
USDA loans are mortgage loans that are backed by the United States Department of Agriculture as part of its USDA Rural Development Guaranteed Housing Loan Program. They are designed to help low - to moderate - income individuals or households purchase homes in rural areas. The main goal of USDA loans is to help rural communities thrive by making homeownership more accessible.
USDA loans are an excellent option for eligible homebuyers looking to purchase a home in rural areas with little or no down payment and who might not qualify for a conventional mortgage.
How Does a USDA Loan Works?
Eligibility: To start, a borrower must obtain a Certificate of Eligibility (COE) from the VA to prove they meet the service requirements for a VA loan.
Loan Application: The borrower then applies for a mortgage through a VA-approved lender. The lender will evaluate the borrower's credit, income, and other financial information to determine loan qualification.
No Down Payment: One of the most significant benefits of a VA loan is the potential for 100% financing, meaning the borrower may not need to make a down payment.
No Private Mortgage Insurance (PMI): Unlike conventional and FHA loans, VA loans do not require borrowers to pay private mortgage insurance, even with no down payment. This can result in substantial savings over the life of the loan.
Limited Closing Costs: The VA limits the closing costs that veterans can pay and requires that some fees be covered by the seller or the lender, further reducing the cash needed to close.
VA Funding Fee: While there's no PMI, VA loans come with a VA funding fee, which can be financed into the loan amount. This fee varies based on factors like the type of service, the size of the down payment, and whether it's the borrower's first VA loan.
Loan Guarantee: If the borrower defaults on the loan, the VA guarantees a portion of it, reducing the risk for the lender and often resulting in better interest rates for the borrower.
Special Assistance: In the event of financial hardship, the VA offers assistance to help borrowers avoid foreclosure.
Once you've closed on your home, you'll begin making monthly payments on your USDA loan, which includes the principal, interest, and the annual USDA fee.
Overall, USDA loans are designed to make homeownership more accessible in rural areas by offering favorable terms to those who meet the program's guidelines.
Benefits of USDA
No Down Payment: USDA loans allow for 100% financing, which means you can finance the entire cost of the home without needing a down payment. This is one of the most attractive features, making homeownership accessible to many who might not have the savings for a traditional down payment.
Reduced Mortgage Insurance: While USDA loans require an upfront guaranteed fee and an annual fee that functions like mortgage insurance, these fees are lower than the private mortgage insurance (PMI) or FHA mortgage insurance premiums required for other types of loans.
Lower Interest Rates: Because the loans are backed by the government, lenders are able to offer competitive, and often lower, interest rates compared to some other loan types, which can save borrowers money over the life of the loan.
Flexible Credit Requirements: USDA loans generally have more lenient credit requirements than conventional loans, which can help applicants with less-than-perfect credit scores to qualify.
Closing Cost Assistance: The USDA loan program allows for certain closing costs to be included in the financing of the loan or paid by the seller, which can help reduce the amount of cash needed at closing.
Longer Amortization Period: USDA loans come with a 30-year fixed-rate term, providing borrowers with stability and predictability in their monthly mortgage payments.
Use for Purchase or Refinancing: While primarily used for purchasing homes, USDA loans can also be used for refinancing, allowing homeowners in rural areas to take advantage of better terms.
Supports Rural Development: The program is designed to help populate and develop rural areas, so it can be a good choice for those looking to live outside of urban centers and contribute to the growth of rural communities.
Features of USDA
No Down Payment Required: One of the most significant benefits is that they offer 100% financing, meaning eligible borrowers can obtain a loan without a down payment.
Location Specific: To qualify for a USDA loan, the property must be located in an eligible rural area as defined by the USDA.
Income Limits: Borrowers must meet certain income restrictions to qualify, which are based on the median income of the area where the home is located and adjusted for family size.
Mortgage Insurance: While there is no down payment, USDA loans require a guaranteed fee, which functions similarly to mortgage insurance. This fee can be rolled into the loan amount, and there is also an annual fee that is paid monthly.
Competitive Interest Rates: USDA loans offer interest rates that are at or below market rates.
Credit Flexibility: While borrowers need to have reasonably good credit, the requirements are not as strict as for conventional loans.
Loan Terms: USDA loans are available with 30-year fixed-rate terms, providing stable and predictable monthly payments.
Use for Purchase or Refinance: These loans can be used not only for purchasing a new home but also for refinancing an existing mortgage under certain conditions.
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