USDA Loans
A USDA loan is guaranteed by the US Department of Agriculture and is an affordable mortgage option offered to people who want to buy in rural areas. Most often these loans are used for homes in rural areas, however,. these loans can be used for farms or rural businesses.
Since these loans are guaranteed by the USDA, if you default on the loan, the USDA will repay the bank. Because of this built-in security, lenders offer better terms and more generous approvals.
USDA Mortgage Programs
The USDA direct loan is meant for very low-income families. With USDA direct loans, the USDA acts as your lender. For more information on direct loans, go to the contact page and talk to one of our loan originator!
The USDA guaranteed loan is meant for low- to moderate-income families and is the more popular USDA loan option. USDA guaranteed loans can be funded by private lenders. If you’re interested in seeing if an USDA guaranteed loan is for, contact one of our loan originators!
Home improvement loans allow very-low-income homeowners to repair or improve their homes. For additional information, talk to one of our loan officers!
What Areas Are Considered Rural By The USDA?
An area is considered to be rural if the population is below 20,000. To find out if the home you are looking at is in a USDA Rural Development Loan eligible location, click the button to the right! At the top of the page includes different categories including loans for single family housing, multi-family housing, and rural businesses. Click the category that best matches your needs and type in the address.
What Are the Requirements for a USDA Loan?
Credit Score
In most cases a 640 or better credit score is required. (If your score is close to 640 or slightly below, you may still qualify based on other options)
No Down Payment is Required
Debt-to-Income ratio of 43% or lower
Upfront and Annual Guarantee Fees Required
The guarantee fee is similar to the Mortgage Insurance (MI) in a conventional
Adjusted gross income cannot exceed 115% of the median income in the area.
Stable income and Assets to validate that you are able to make the mortgage payment without issue for at least 12 months
You must be a U.S. resident, noncitizen, or permanent resident alien
Home must be in an eligible rural area
Must be your primary residence
Closing Costing assets will be required