USDA Home Loan Mortgages

Are you ready to buy a home with no money down? Check your USDA eligibility in less than 3 minutes.



USDA Rural Development Mortgage Overview

Features

Benefits

Down Payment is not required

Borrowers without savings, or who wish to retain their savings qualify

100% financing

More Americans become homeowners

No reserves are required

Buyers do not need to provide bank statements

Expanded qualifying ratios

Buyers with satisfactory credit may qualify with higher Debt-to-Income ratios to accommodate high cost housing areas, etc

Seller is allowed to pay Buyer's Closing Cost (ask USDA Specialist for details)

Reduces out of pocket costs for Buyers

Low minimum credit score (620 minimum credit score required)

Buyers with non-traditional or no credit histories may qualify

Streamlined processing with 620 credit score

No explanations on credit with 620+ score

No monthly PMI

No monthly mortgage insurance means a lower monthly payment for the Buyers and additional cash each month

Generous income limits based on 115% US median (not HUD)

Deductions are available for dependents, daycare, elderly households, etc. to assist more individuals and families in qualifying

No maximum purchase price limit

Buyers choose the home that meets their needs and repayment ability

NOT just for first time buyers

All homebuyers are eligible for benefits

Modular and Manufactured Homes may be eligible

Purchases only

Education/training substitute for job tenure

Income history for ratios is waived.

USDA is the lowest payment loan option for buyers wanting a FIXED Rate

No MI, very low 30 YEAR FIXED rates and very easy to qualify

A USDA Guaranteed Loan is a Government Insured 100% Purchase Loan. These loans are only offered in rural areas



IMPORTANT: DUE TO HIGH VOLUME WE ARE ONLY ACCEPTING ONLINE APPLICATIONS AT THIS TIME. You may call to check the status of your approval after you complete your online application.

UPDATE: The USDA loan now requires a minimum 620 credit score.

TAX CREDIT: Ask your USDA Specialist about the $8,000 tax credit for First Time Home Buyers and the $6,500 for Repeat Home Buyers.

NOTE: Tax Credit ends April 30th, 2010



Check your USDA Eligibility HERE

Guaranteed Rural Housing Loans

To be eligible, applicants must:

Have an adequate and dependable income;

Be a U.S. Citizen, qualified alien, or be legally
admitted to the United States for permanent residence;

Have an adjusted annual household income that does not exceed the moderate income limit established for the area. A family’s income includes the total gross income of the applicant, co-applicant and any other adults in the household. Applicants may be eligible to make certain adjustments to gross income— such as annual child care expenses and $480 for each minor child—in order to qualify.
USDA Rural Development field offices can provide information on the moderate income limits for the areas that fall within their jurisdiction, and can provide further guidance on calculating household income.

Have a credit history that indicates a reasonable willingness to meet obligations as they become due;

Have repayment ability based on the following ratios: Principle, Interest, Taxes, and Insurance (PITI) divided by gross monthly income must be equal to or less than 29 percent. Total debt divided by gross monthly income must be equal to, or less than, 41 percent.

Useful USDA Links and Documents

State Totals Loans 2001 - 2007 USDA Rural Development Voucher Program

Section 514 Farm Labor Housing Loans and Section 516 Farm Labor Housing Grants for Off-Farm Housing
Guaranteed Loans Under the Section 538 Guaranteed Rural Rental Housing Program (GRRHP)

Chapter 1: Overview of Guaranteed Rural Rental Housing Chapter 2: Lender Eligibility and Approval

Chapter 3: Lender Underwriting Chapter 4: Loan Guarantee Application Pocessing

Chapter 5: Construction Requirements Chapter 6: Program Fees

Chapter 8: Property Management Chapter 9: Insurance Requirements

Chapter 10: Claims Chapter 11: Environmental Requirements

Chapter 12: Secondary Market