USDA Home Loans in Your State

If you’re a homeowner with decent credit, but struggling to get approved for a conventional home loan, you may want to consider your states USDA home loan program. The USDA Home Loan program is specifically designed for lower to moderate income families, or individuals, looking to purchase a home in a rural area. While USDA Loans in your state have long been considered “farmers loans”, this is not the case. Many residents are often surprised when they discover that in many cases USDA rural areas can be suburbs on the outskirts of larger cities, or small towns with less than 25,000 residents. USDA

Home loan advantages USDA

Home Loans in your state offer many advantages to qualified borrowers that you won’t find from a traditional mortgage. First and foremost, the USDA home loan program is one of the only home loan programs left in the country that requires absolutely no money down on the purchase of your home. This could be essential for buyers who can’t afford to save up thousands and thousands of dollars needed for the costly down payment of a home. Also, the USDA loan program has tons of other excellent features such as a low interest rate 30 year fixed term, very low PMI insurance, and you still can be accepted even if you’ve had a previous bankruptcy, as long as it has been discharged for more than two years. Another great feature of the USDA home loan program is that closing costs can be financed into the total amount of the loan, or can be arranged to be paid by the seller. This can save the buyer thousands of dollars upfront when purchasing the home, which can be spent on other necessities like on furnishing the home, home repair, and home insurance.

Who is eligible for a usda home loan

To be eligible for a USDA Home Loan in your state, you must meet the following criteria. You must have moderate to low income, but still be able to prove that you can afford to make mortgage payments every month. Because the USDA home loan program was designed to help low, to very low, income families and individuals secure a home loan, there are designed income limits that vary for each USDA qualified area. These income limits are generally 115% of the average median income for that area. You must also be a U.S. citizen, or legally permitted to be in the United States.

Please call 888-403-0505 and speak to a loan officer now about eligibility in your area or apply below.

 

Take The First Step and Get Pre-Qualified Today!

Pre-Qualifications are an important step in today's real estate market. They show sellers that you are qualified to buy their home and that your offer should be considered above other, less serious offers.

USDA Eligibility Requirements

The USDA Home Loan Program is officially referred to as “USDA 502 Guaranteed Rural Housing Loan Program.” It is designed for both individuals and families who have low to moderate incomes. However, it is important to note that the low to moderate term is used in the broad sense and many people do qualify.

The USDA offers a zero down payment home loan program with affordable terms to make the dream of home ownership a possibility for thousands of individuals every year. The USDA Home Loan Program also benefits the rural parts of the country, by attracting residents to these areas. Fortunately, around 97% of the United States is designated rural for purposes of the loan, so many properties do qualify.

Benefits of USDA Loans

  • No Down Payment – The most attractive benefit for many buyers is that the USDA loan allows you to buy a home with no money down. Purchasing without needing to put 20% down allow many people to get out of the rental cycle.
  • Low Interest Rates – The USDA loan itself offers attractive interest rates that can save home buyers money over the life of the loan.
  • No Cash to Close Options – Closing costs don’t have to be a problem. These can be paid through gifting, could be covered by the seller as part of a negotiated deal or may even by able to be financed as part of the loan amount.
  • Flexible Credit Criteria – While there are credit requirements, they aren’t set in stone but instead include a review of credit history. This makes it possible for more people to qualify.
  • Ideal for Low to Moderate Income Families – The USDA Home Loan Program was developed with the needs of low to moderate income families in mind. However, “low to moderate income” is a broad term. The requirements are simple and can be met by many.
  • Not Only for First Time Homeowners – Unlike some lending programs, even those who have owned homes in the past can also qualify. The flexibility as far as this goes is appealing and allows for more qualifications to go through smoothly.
  • Affordable Mortgage Insurance – Mortgage insurance is tied to the principle balance. Premiums decrease as the loan balance decreases.

Did you know you can secure a mortgage by filling out one of our fast and easy online applications?

Once your application is filled out we assign a Loan Processor to verify the financial information on the application and to make sure you have everything you need to proceed.

To learn more about the mortgage process and the other steps to buying a home fill out this form below to download the FREE Guide!
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