What is a USDA loan?
A USDA loan (also called a Rural Development Loan) is a government insured home loan that allows you to purchase a home with NO Money Down. USDA Home Loans offer 100% financing to qualified buyers, and allow for all closing costs to be either paid for by the seller or financed into the loan. USDA offers some of the lowest rates of any loan, and you will always have a fixed interest rate.
What are the USDA loan requirements?
Standard debt-to-income ratios are 29/45 for USDA Loans. These ratios may be exceeded with compensating factors. A fico score of 620 or above is required for all borrowers through most lenders. USDA loans are only available for primary residence. There are income limits with this program, and the limits vary from county to county. Contact your loan officer for your income limits.
What are the USDA down payment requirements?
No down payment is required.
What will my interest rate be?
USDA rates are comparable with FHA, and VA interest rates. Loan amount size, and credit scores will have an impact on the interest rate.
What types of properties are eligible?
First off, you have to make sure that your area is eligible for a USDA loan. Contact one of our loan officers for more information. Single family residence, and town homes are eligible. Primary residence transactions only. If the home has a pool, the pool cannot have any value in the transaction. Again, contact your loan officer for more information on how this works.
What is my maximum loan amount?
What kind of loans do USDA programs offer?
30 year fixed is the only program available. There are no prepayment penalties with any of these loans.