USDA Loans – How to Finance 100% of Your Home
USDA Rural Loans are mortgages that are backed by the U.S. Department of Agriculture as part of its USDA Rural Development Guaranteed Housing Loan program. USDA loans offer 100% financing with reduced mortgage insurance premiums.
If purchasing a property in an outlying area appeals to you, then the USDA loan may be the perfect fit to help you achieve your American Dream Home. With the no down payment option, it makes the financing process less expensive for you!
Those currently that have a USDA loan are also able to refinance their current mortgage through this program.
The Benefits of The USDA Program:
- Less Cash Required: No need to drain your savings with no down payment and no cash reserve requirements
- Selection: Purchase or Rate/Term Refinance Programs are available (refinancing under a USDA Rural Development loan is only allowed with a current USDA Rural Development loan)
You can count on us for the local market knowledge that assures a smooth transaction so you can concentrate on other business, like moving into your new home.
USDA Loan FAQs
- What is the maximum loan amount available under the USDA loan program? USDA does not have maximum loan amount, but rather has borrowers qualify for a loan amount based on their debt- to-income ratio (DTI). The DTI limit is generally 42%, but an exception can be made if a borrower shows strength in other areas of their mortgage application.
- How long does it take to close on a USDA loan? Standard loans can take 30-45 days, but USDA loans require a few extra days or an extra week to process. The reason being is that they first have to be approved by the mortgage lender, and then sent to a local USDA office for final approval (which is where the extra time needed comes from).
- Can only first-time home buyers qualify for a USDA loan? No. USDA loans do not place any restrictions the on previous home ownership.
- Can I qualify for a USDA loan if I have a bankruptcy in my past? You can still qualify for a USDA loan if it has been at least three years since your Chapter 7 bankruptcy.
- Are USDA loans fixed-rate mortgages or adjustable rate mortgages? All USDA loans are fixed-rate mortgages.
- Are there any requirements on where the property is located in order to qualify for a USDA loan? Yes, to qualify for a USDA loan, the property must be in an eligible area.
To see if you can qualify for the USDA Rural Development Program, contact our office or visit the USDA’s eligibility website.
To check if a property is eligible for the USDA Rural Development Program, click here.