USDA Loans

USDA Loans Are Good For:

USDA loans are a great fit for first-time buyers or households with steady income who are purchasing in eligible rural or suburban areas. They’re ideal for borrowers with limited savings who want affordable monthly payments and are open to buying outside major city limits.

Overview of USDA Loan Programs

The Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers – so no money down for those who qualify!

Eligibility Requirements

To qualify for a USDA loan, applicants must meet the following criteria:

• Income Limits: Meet income-eligibility (cannot exceed 115% of median household income)
• Location: The property must be located in an eligible rural area, which can be verified using the USDA eligibility map.
• Primary Residence: The home must be occupied as the applicant’s primary residence.
• Citizenship: Applicants must be U.S. citizens, non-citizen nationals, or qualified aliens.

What is an eligible rural area?
Utilizing this USDA’s Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas. 

Benefits of USDA Loans

• No Down Payment: USDA loans allow for 100% financing, making homeownership accessible without a down payment.
• Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
• Flexible Credit Requirements: USDA loans typically have more lenient credit score requirements, making them accessible to a broader range of applicants.