Your City, Your State USDA Purchase Home Loan
Loan guarantees are offered on a variety of government sponsored mortgage programs and enable mortgage lenders to provide USDA home loans to borrowers in Your City, Your State that would not traditionally be able to get approved.
Reasons to Consider a USDA Purchase
- Very competitive fixed interest rates.
- Zero money down allowing financing up to 100% of your home's value.
- Affordable loan terms at 30 years.
USDA loans offer a competitive fixed rate. In fact, the USDA home loan program does not offer adjustable rate mortgages of any kind. So your monthly mortgage payments will never increase with a USDA home loan. The only fee associated the USDA rural housing program is a small one-time funding fee. USDA housing loans allow you to put more money towards paying off your mortgage each month, rather than towards fees.
Qualifying For A USDA Loan
The USDA home loan program allows responsible homeowners to refinance into a guaranteed loan. Both streamlined and non-streamlined refinance options are available through the USDA loan program. For a non-streamlined refinance, the existing loan's principal and interest, as well as closing costs and lender fees, may be included in the new loan.
In addition, an appraisal will be required for all non-streamlined loans. Streamlined loans offer the convenience of no appraisal, but require a home inspection to ensure the property meets all HUD requirements. This type of refinance must also be manually underwritten. The existing loan's principal balance is refinanced, and any accrued interest, closing costs and lender fees cannot be included. Furthermore, this refinance option is only available for Section 502 Guaranteed loans, not direct loans.
USDA Purchase Loan Quick Reference
Great Interest Rates: USDA loans are made even more affordable through very competitive fixed interest rates, ensuring your payments will not increase every month.
Zero Money Down: A USDA loan is one of the few programs offered that allows you to finance 100% of your home value. That means no down payment of any kind!
Finance Your Closing Costs: A USDA loan allows you to finance in your closing costs up to the appraised value. The USDA loan is one of the only mortgages on the market with this benefit.
Affordable Loan Terms: USDA home loans also offer affordable 30 year terms.
The Guaranteed Loan Program, managed by the Housing and Community Facilities Programs (HCFP), provides a loan guarantee to a mortgage lender on loans that meet USDA loan guidelines. An individual looking to get approved for a USDA loan in Your City, Your State would work with a lender that is approved to offer these loans and would make his or her payments to that lender after closing.
Loan guarantees are offered on a variety of government sponsored mortgage programs and enable mortgage lenders to provide USDA home loans to borrowers that would not traditionally be able to get approved.
One of the biggest hurdles to overcome for new homeowners is coming up with the initial down payment. With a USDA home loan, a borrower can finance up to 102% of the home's value which includes the guarantee fee.
USDA Rural Development Loan Program Benefits
There is no down payment required for a USDA home loan and 100% of the home's appraisal value, plus the one time funding fee, can be financed through the USDA rural housing home loan. That means, you don't have to pay anything out of pocket when financing with a USDA home loan.
USDA loans offer a competitive fixed rate. In fact, the USDA home loan program does not offer adjustable rate mortgages of any kind. So your monthly mortgage payments will never increase with a USDA home loan.
The only fee associated the USDA rural housing program is a small one-time funding fee. USDA housing loans allow you to put more money towards paying off your mortgage each month rather than towards fees. The USDA housing loan program also has no maximum seller concessions. This means you can have the seller pay ALL of the closing costs, saving you even more money.
First Time Home Buyer Benefit
If you have not owned a home in the 3 years prior to purchasing your new home, you may be able to qualify for a tax credit of 10% of the home purchase (up to $8,000). Unlike tax deductions, this benefit is a tax credit a dollar-for-dollar return on your taxes! The government is now allowing this tax credit to be used to cover any closing costs as well.
Single Family Housing Loans and Grants
Single Family Housing Programs provide homeownership opportunities to low- and moderate-income rural Americans through several loan and grant guarantee programs. The programs also make funding available to individuals to finance vital improvements necessary to make their homes decent, safe, and sanitary.
USDA Home Loan Requirements
For those that live in a qualifying suburban town (generally with a population less than 20,000), a USDA home loan may be your perfect loan option if purchasing a home. The government created the USDA loan program to encourage growth in our nation's small communities, and today it remains the last real no money down loan in existence.
In order to qualify for a USDA rural home loan, you must meet the program's requirements.
First, the home MUST be in a designated USDA rural area, and the borrower must not exceed the income limit set for that area.
There is no minimum credit score to qualify for a USDA rural development loan, but you must be able to show a willingness and ability to repay mortgage obligations. A credit check indicating no more than one late payment in the past twelve months is generally accepted as indicating a willingness to repay. You must also be able to verify income for the last two years.
If you are worried you may not meet this condition, call 888-664-9572 to speak to one of our loan officers as we may still be able to help you. Meet the requirements, or want us to verify your eligibility? Give us a call today!