USDA Home Loans FAQ
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
Are there restrictions on where I can get a USDA home loan in Washington State?
Yes, the USDA Home Loan was designed for rural communities, meaning that a USDA loan is only available in communities where the population is less than 25,000. To better serve you we provide USDA property eligibility maps on our site. If you would like to see if your area qualifies view our Property Eligibility Page or call us directly. Our experts are well versed in where in Washington State you will be eligible for a USDA mortgage.
Are USDA Guaranteed loans only for low income borrowers?
No, USDA Guaranteed loans are for middle class 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.
Do I have to be a first time homebuyer to qualify for a USDA Guaranteed loan?
No, you do not have to be a first time homebuyer to qualify for a USDA Guaranteed loan. However there are restrictions on purchasing a second home with a USDA rural home loan, contact us directly to get your questions answered today.
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 100% financing. 100% of the purchase price can be financed, as well as, the 3.5% 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 Home Loans harder to close than other kinds of home loans?
Not at all, borrowers will find that USDA home loans are some of the most flexible loans available today. Furthermore, we specialize in USDA home loans and make the loan process fast and simple. Clients who work with us benefit from our in-depth understanding of the USDA’s guidelines which help insure their loans close as scheduled.