If you thought U.S. Department of Agriculture (USDA) mortgages were just for farmers – think again. Let our team of Mortgage Originators educate you about USDA mortgages and help you take advantage of their many benefits. Think your area is not eligible? Well, about 97% of United States land mass is USDA-eligible, representing 109 million people. Many properties in suburban areas may be eligible for USDA financing. It’s worth checking, even if you think your area is too developed to be considered “rural”. The USDA eligibility maps are still based on population statistics from the census in the year 2000. This is a unique opportunity to finance a suburban home with this zero-down mortgage program before the USDA updates their maps.
What Is a USDA Mortgage?
USDA mortgages are designed to encourage rural land development and growth in rural areas. They were long thought of as just for farmers, but the program has been expanded in recent years to give more people looking to purchase or refinance in a rural area access to the incredible benefits offered by these mortgages.
USDA Guaranteed Rural Housing Loans Applying for USDA Loans
We offer USDA Guaranteed Rural Housing Mortgages. These mortgages are designed to help families without adequate housing finance the purchase of a home in a rural area. Applicants may have incomes up to 115% of the area’s median income and must be able to afford mortgage payments, including insurance and applicable taxes. Credit score is also considered in the application process.
The duration of a USDA Guaranteed Rural Housing Loan is 30 years, with an interest rate determined by the lender. No down payment is required, which sets these loans apart from more traditional home loans.
USDA Mortgage Eligibility
Program guidelines are very specific – but don’t let that stop you from achieving your homeownership goals. Our experienced USDA mortgage originators will help you navigate through the USDA mortgage process and determine if you are eligible. Borrowers can search USDA’s maps to browse certain areas or pinpoint a specific address. The maps are located here.
Basic qualifications include:
- The property being purchased must be in a rural area as defined by the USDA.
- The property must be owner-occupied. Investment or vacation properties are not eligible for USDA mortgages.
- You must meet the income restrictions for the county the property is located in. Each county has a maximum income limit defined by the USDA. This maximum income limit depends on the cost of living, median income and other economic characteristics of the county the property is located in.
Benefits of a USDA Mortgage
USDA mortgages offer a number of unique benefits that set them apart from standard home mortgages. USDA mortgages require no down payment, so qualified individuals can finance up to 100% of the home’s total purchase price. This makes them one of the more desirable loans available to homeowners.
USDA mortgage benefits include:
- 100% financing option available
- Great rates and down payment options
- Better terms than a FHA or conventional mortgage
- Flexible credit guidelines mean less than perfect credit may still qualify
Learn More About the USDA Loan Application Process
Contact us and a qualified Mortgage Originator will walk you through the USDA mortgage application process and answer any questions that may arise. Start your secure online Mortgage Application now!