Maybe you're looking to leave the pavement for greener pastures. If so a USDA loan might be right for you.
USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture.
The primary benefits of a USDA Purchase are...
- This loan is offered requiring no down payment. Zip. Zero. Zilch. The fact that the USDA loan program allows home buyers to achieve 100% financing is without a doubt the greatest benefit of getting a USDA loan
- Because a USDA loan is insured by the U.S. Department of Agriculture, you’ll be offered a low, extensive interest rate that doesn’t vary based on your credit score or down payment, as it does with conventional financing
- Private Mortgage Insurance (PMI) is required for any loan with less than 80% loan-to-value (LTV), regardless of the loan program. A USDA loan’s PMI rate is the lowest of any loan program and won’t change based on your down payment
How do I qualify?
USDA guaranteed home loans are only for owner-occupied primary residences.
Some other eligibility requirements include...
- U.S. citizenship (or permanent residency) with a reliable and consistent income, usually for a minimum of 24 months
- A monthly payment — including principal, interest, insurance and taxes — that’s 29% or less than your monthly income. Other combined debt payments payed monthly you make cannot exceed 41% of your income. However, the USDA will consider higher debt ratios if you have a credit score above 680.
- An acceptable credit history, with no accounts converted to collections within the last 12 months, among other benchmarks. If you can prove that your credit was affected by circumstances that were outside of your control or temporary, you may still qualify.
We’re transforming the way people think about financing their home. We’re also building a team that proactively tackles the challenges that come with getting a mortgage. Learn more about why we do what we do.
Fixed vs Adjustable?
For most loan types we offer, you have the option of choosing between a fixed or adjustable rate. We explain the benefits and drawbacks of each so that you can make the best decision for your situation.