A USDA Loan is a mortgage loan that is insured by the US Department of Agriculture and available to qualified individuals who are purchasing or refinancing their home loan in an area that is not considered a major metropolitan area by USDA.
Great for First-time Home Buyers
100% Financing (including Closing Costs)
No Down Payment Requirements
No Prepayment Penalties
Existing Homes, Foreclosures, New Construction
Benefits of USDA Loans
- 100% Financing - you can buy a home with no money down.
- You can refinance your home up to 100% of the value of your home.
- Lower rates and Lower mortgage insurance then a conventional loan.
- Loan limits up to $484,350 based on your income and debt ratios
- Simple Loan Process.
- There is No Prepayment Penalty.
Who is eligible for a USDA Loan?
Generally these loans are available to anyone who meets minimum credit guidelines and local area income requirements and is purchasing a home or refinancing their home in an area that is not considered a major metropolitan area by USDA.
Some common misconceptions of USDA Loans:
- They are just for farmers - USDA Loans are not "just for farmers," millions of people from all walks of life already qualify.
- FHA or Conventional Loans are better - USDA Loans often offer better terms than an FHA or conventional loans.
- They aren't flexible - Actually, USDA Home Loans can be used to buy a new home or refinance to a lower rate.
- Only certain people can qualify - Anyone who meets the income and credit guidelines can qualify for a USDA Home Loan.
- They are only for rural areas - Actually, USDA Loans are available in many areas that most people would not consider rural. For example, many small communities just outside of metropolitan areas qualify as rural areas according to the US Department of Agriculture.
Check to see if you qualify for a USDA Loan: