USDA Loans
Summary
USDA loans are government-insured mortgage loans designed to help low- and moderate-income households the opportunity to purchase a primary residence in eligible rural areas.
Qualified borrowers are subject to income limits set forth by the United States Dept. of Agriculture.
Properties must be located in a Rural-Agricultural zone as determined by the United States Dept. of Agriculture.
Who Can Apply for USDA Loans?
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U.S. Citizens, U.S. non-citizen nationals, or qualified aliens.
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Borrowers who do not qualify for Conventional financing and whose income does not exceed the maximum limit set by the USDA. Income restrictions vary based on County. Refer to USDA Income Eligibility.
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Borrowers purchasing property as a Primary Residence in a USDA Eligible Area.
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Borrowers who have not been suspended or debarred from participating in federal programs.
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You do not need to be a first-time homebuyer!
What are the Benefits of USDA Loans?
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Zero Down Payment! Save thousands of dollars in expenses by purchasing a home with no down payment.
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Lower interest rates: Since the USDA insures a portion of the loan against default, reducing risk, lenders can charge lower interest rates. Typically the rate is at least .5% lower compared to Conventional rates.
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Closing Cost Flexibility: Sellers can pay for the buyer's closing costs, up to 3% of the sales price. Gift funds from family can also be used. If the property appraises for higher than the sales price, the buyer can finance closing costs, up to the higher appraised value.
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Low minimum credit score of 600.