USDA Loan Options
USDA Property Eligibility Search Tool
What is the USDA Home Loan Program?
The USDA Guarantee loan is a 100% financing mortgage for moderate-to-low income homebuyers in eligible rural and suburban areas. Loans are issued through the USDA Rural Development Guaranteed Housing Loan Program, which was created by the U.S. Department of Agriculturw
USDA Loan Requirements
Total household income less than 115% of the average in your area
620+ credit score
No bankruptcies or foreclosures in the last two years
Occupy the property as your primary residence
Must be in an eligible location Work with a USDA-approved lender
Be a U.S. citizen, non-citizen national or qualified alien.
No Downpayment Loan (100% Financing) Amongst the several advantages of the USDA program, the ability to put zero-down and get 100% financing is one of the most significant benefits. They are one of only two types of mortgage loans that require no down payment, the other being VA loans. These benefits make these loans perfect for first-time home buyers.
Low Mortgage Insurance Premiums USDA mortgages have the lowest mortgage insurance premium of any home loan program besides the VA, which requires no mortgage insurance. The annual MIP is just 0.30%. When compared to the FHA PMI fee of 0.85%, the savings is substantial.
On a $200,000 home, PMI on an FHA loan is $1700 per year. A $200,000 home, USDA PMI will be just $600 annually, a savings of $1100 per year. There is a one-time up-front mortgage insurance payment of 1% of the loan amount that is added into the loan. Borrowers save an average of $100 per month with a USDA home loan over FHA loans because of the reduced mortgage insurance.
USDA Home Loan Benefits Zero downpayment Low mortgage rates Finance more than 100% of the sales price Low PMI (mortgage insurance) 30yr and 15yr fixed rate options available 640 credit score required 97% of the U.S. is in an eligible zone Must wait 36 months after a bankruptcy or foreclosure to qualify Owner-occupied properties only Easier to qualify for that conventional mortgages
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UPLAND, CA 91786
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