USDA Loan


USDA Loan

USDA Loan

A USDA loan is considered to be a Rural Housing Loan program that is insured by the U.S. Department of Agriculture that gives home buyers a no down payment financing option in rural areas. A USDA loan can offer 100% financing to qualified home buyers and allow the closing costs to be paid by the seller or financed in the loan. A USDA loan can also offer the lowest interest rates of any other loans and the USDA loan will always have fixed interest rate. To be eligible for an USDA loan, there are a few factors that will be considered and those are your credit worthiness, USDA loan income restrictions, where you live, and whether or not you wish to own additional property.


There are a quite a few benefits that you should look at when you are trying to consider whether or not a USDA loan is right for you and your financial situation. A USDA does not require you to be a first time home buyer. A USDA loan allows for all types of individuals that fall within the 115% of the median income for your area to be eligible for these benefits. A USDA loan is intended for middle income families, who fall within the income limits that are honored in your state, county, and family size. A USDA loan allows for home loan amounts to be up to 102% of the appraised value of the property. A USDA loan amount may go over the sales price of the home to finance the settlements costs and any other related expenses that go with this type of loan. A USDA loan has the benefit of a low mortgage insurance premium. A USDA loan charges 2% of the loan amount as an upfront fee at the time of closing, which in most cases will result in lower mortgage insurance. A USDA loan has flexible credit terms. A USDA loan can offer an advantage to families who would otherwise not qualify for ordinary loan programs. Finally one last benefit of a USDA loan is that all property types are allowed in this program. A USDA loan can be used in suburbs, towns, and rural areas. Single family homes, condos, townhomes, and manufactured can be included in a USDA Loan. You will want to contact a local lender in your area to see what your choices are in regards to a USDA loan.