USDA Loans

Specialized financing solutions for both rural and designated suburban areas.

Special Financing Options for Homes in Rural Areas

USDA loans are designed to help low-to-moderate income families in rural areas afford homeownership. The USDA makes it easy to find out if your household income or property are eligible for a USDA loan – simply visit their website to get started. 

 

Loans Backed by the U.S. Department of Agriculture

Finance Up to 100%!

One of the most attractive benefits of a USDA mortgage is the no down payment option for eligible borrowers. Unlike FHA and conventional mortgages that require at least 3% down, a home purchased with a USDA loan often comes with less initial out-of-pocket costs. You may even be able to roll applicable closing costs into the loan! 

USDA’s Guarantee and Annual Fees
Similar to a VA funding fee, USDA home loans require an upfront guarantee fee that ensures the program can continue for years to come. This is a one-time fee that is usually 2.75% of the loan and often added to your initial loan amount so you can pay it over the life of your loan.
USDA loans also have an annual fee attached to them. This is 0.5% of your loan and conveniently included in your monthly mortgage payment. 

USDA Loans Are Not Just for First Time Homebuyers
While the little to no down payment option is attractive mostly for first time buyers, USDA mortgages are also designed to serve low-to-moderate income borrowers. Currently, your household income must be below 115% of the area median income (AMI) to qualify. To find out if your income is eligible simply check it here on the USDA’s website.

Flexible Underwriting and Credit Requirements
To help families in rural areas afford homeownership, USDA mortgages have more flexible requirements than conventional loans. While you will have to pay mortgage insurance throughout the life of your USDA loan it’s capped at 1% - much less than conventional mortgages. USDA loans also qualify borrowers with lower credit scores, allowing as low as 580 FICO. You may even be able to qualify with a lower credit score due to certain extenuating circumstances.