USDA Home Loans
USDA loans are designed to help borrowers in rural areas to purchase land or property. These loans often offer flexible guidelines, great rates, and sometimes 100% financing with no money down. These loans are insured by the government, and serviced by direct mortgage lenders that meet federal guidelines.
Designed for buyers looking outside metropolitan areas, USDA loans are a great option for farmland, creative land use, and residential properties. Household limits apply and the loan is based on location.
Why Consider a USDA Loan?
USDA loans are a very attractive option for borrowers who want to purchase a home or refinance their current USDA mortgage. USDA loans are for rural areas, but rural does not necessarily mean remote.
Do not assume that the eligible properties are all located miles and miles from civilization. A quick eligibility check will allow you to track down homes that meet the USDA guidelines. Guess what? Many of them are in close proximity to some of the nation’s fastest growing metro areas. USDA financing is one of the only mortgages available other than those for members of the US military that offer zero money down. It is an excellent option for those with low to moderate incomes or less than perfect credit. Payments are kept affordable, thanks to the fact that the loans are 30-year fixed rate mortgages.
Benefits of USDA Loans
As little as 0% down payment
30, 25, 20 and 15year terms available with fixed rates
5-year adjustable rate mortgage available
No monthly PMI (Private Mortgage Insurance)
USDA loans are governed by the U.S. Department of Agriculture
Pay your mortgage off at any time without pre-payment penalties
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Up to 102% LTV
30 year fixed only
No maximum purchase price
Closing costs can be financed
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No appraisal needed
No income verification
Reduced documentation
Must lower your rate by 1%
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View our page on Renovation Loans