Primary Advantages of a USDA Home Loan
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No Money Down Purchase -
No Monthly Mortgage Insurance
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30 Year Fixed Interest Rate
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Flexible Credit Underwriting
USDA Home Loans have become extremely popular in the past few years because they offer zero money down purchases with no mortgage insurance. While lenders across the country have tightened their credit criteria, the USDA Rural Mortgage Program has remained relatively unchanged. More than ever the USDA Rural Housing Program is committed to helping families accomplish their dreams of home-ownership. If you have good credit and verifiable income, a USDA Mortgage can be an excellent way to make home-ownership a reality.
USDA Home Loan Summary
- Can be used for the purchase of an existing or new home
- Can be used to refinance and existing USDA home loan
- Available in Rural Areas only
- Primary residence only, no investment properties
- Borrowers must meet USDA’s Credit Eligibility Guidelines
- Borrowers must meet the USDA’s Income Eligibility Guidelines
- 30 Year Fixed Interest Rates are available
- No Mortgage Insurance Premiums
Experienced in USDA Home Loans.
We specialize exclusively in USDA Mortgages. If you are looking for a team of professionals who can guide you through the pre-approval and closing process with confidence, than you have come to right place. Our knowledge of the USDA loan process help insure that you loan closes as scheduled. To learn more about USDA Mortgage Group visit our “about us” page.
USDA Property Eligibility:
The USDA Mortgage Program is only available in rural areas, typically in towns that have a surrounding population of less than 20,000. Find out which areas of your state are eligible by visiting our property eligibility page.
USDA Income Eligibility:
The USDA Home Loan Program was designed exclusively for low to middle income households residing in rural areas. To determine the maximum allowable income in your county visit our income eligibility page.
USDA Credit Eligibility:
The credit criteria of USDA Mortgages is less strict then that of other mortgages. Bottom line: If you have decent credit and adequate income you will find that obtaining pre approved for a USDA Home Loan is simple. Read more about the USDA’s Credit Guidelines at our USDA credit eligibility page. Below you will find a list of common credit dis-qualifiers that many prevent you from securing a USDA Home Loan.
Credit Disqualifiers
- Foreclosure within the last 36 months.
- Bankruptcy within the last 36 months
- More than one 30 day late in the past 12 months
- Outstanding Collections
- Outstanding Judgments in the past 12 months
- Two or More missed rent payments within the last 24 months
- Chapter 13 Bankruptcy – Case by Case review
- Delinquent tax liens
- Delinquent student loans
Educating Our Clients
The USDA’s Rural Housing Program is fairly robust. We understand that you might have a unique situation or questions that are not answered directly on our website. That is why we make ourselves available 7 days a week to answer your questions. Feel free to call us today to get all your questions answered.
If you would like to apply online for a USDA Mortgage click here: USDA Loan Application
Frequently Asked Question
What is a USDA Home Loan?
A USDA Guarantee Home Loan is a government insured loan, which is issued and serviced by a lender. USDA mortgages have become a popular in Washington State because they offer a number of advantages over FHA and Conventional loans which include:
- zero money down purchases
- no mortgage insurance
- flexible credit criteria
- seller paid closing costs
Do need to be a first time homeowner to qualify for a USDA Home Loan?
No, the USDA puts no restrictions on previous home ownership.
Do I need to come up with a down payment to qualify for USDA home loan?
No, that is the beauty of this program, there is no down payment requirement. USDA Guaranteed loans offer 102% financing. 100% of the purchase price can be financed, as well as, the 2% Guarantee Fee (fee the government charges to run the program). Borrowers should also know that the USDA allows for 102% financing of the appraised value…which is a great tool when trying to finance closing costs. We specialize in structuring USDA home loans with no out of pocket expenses.
Are USDA Guaranteed loans only for low-income borrowers?
No, USDA Guaranteed loans are for Moderate to Low Income borrowers. In most counties in Washington State, as an example, a 1-4 person family can earn up to $73,600 per year, in some counties the income limit is as high as $92,000 per year. Income limits also increase for families greater than 4, for instance a family of 5 in Pierce County Washington can make up to $103,400 per year and still qualify. To check the USDA income limits for your area visit the USDA Income Eligibility page.
Are there restrictions on where I can purchase a home using a USDA Mortgage?
Yes, the USDA requires the property to be located in a rural area. To determine which areas of the state are eligibile for USDA financing visit our property eligibility page. Typically, towns with a population less than 20,000 are considered eligible for a USDA home loan.
Is the loan process for a USDA home loan similar to other types of home loans?
Yes, From the borrowers prespective a USDA home loan works just like any other kind of home loan. The loan process typically takes between 15 to 30 days depending on the speed at which the appraisal is obtained and how long it takes the USDA regional office to approve the loan. Click here to view a breakdown of the USDA loan process.
