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USDA Loan Experts: 866-661-0581

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Loans From

USDA

Get a low interest rate and no down payments when you purchase a home in a qualified rural area -- or refinance your current USDA home loan for even better rates and lower payments.

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Benefits Of

USDA Loans

Zero Down Payments For Home Loans, Competitive Home Interest Rates, Hard Limits On Permitted Fees, No Mortgage Insurance Worries

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Refinancing

USDA Loans

Make It Easy To Reduce Your Interest Rate, Qualify Quickly With Limited Paperwork, Streamlined Underwriting Process Available

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Eligibility For

USDA Loans

Loan eligibility is easy with the USDA and our loan expert team. If you already have a USDA loan, then you can usually qualify for advantageous refinancing in a matter of just a few days.

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Lenders For

USDA Loans

USDA lenders are private lenders who have decided to adhere to USDA guidelines and offer these federally guaranteed loans. We help you get the best rate by choosing the right lenders.

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Check Your Eligibility

Qualifying for a USDA loan is simple when you have an expert team on your side. Underwriting and approval for USDA loans are both straightforward as long as you're in a qualified rural zone.


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Refinance Your Loan

Refinancing your current USDA loan has never been easier than it is right now. You can get lower interest rates and refinance your loan without having to go through a long process.


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Get Your New Home

Buying a home with a USDA loan is highly attractive because you can get the property you want with no money down. Even your closing costs can typically be financed into your USDA loan.


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Speak With A USDA Lender Today And
Get Pre-Approved For A USDA Loan

Learn More About USDA Loans Get Started


USDA Loans
Benefits
Eligibility
Purchase
Streamline
FAQs
History

Understanding USDA Mortgage Loans

A USDA purchase is an attractive option for anyone with moderate or low income who is looking to make a home purchase in a qualified rural community. The key reasons are:

  • Excellent fixed interest rates that are competitive compared to private sector loans
  • Get your new home with zero money down and even finance your closing costs
  • Repay your loan with a fixed rate over a period of 30 years repayment easily

Lenders love to offer USDA guaranteed loans because these loans are secured by the federal government up to 90% of the original loan value. That makes it so much easier to offer loans to individuals that you, the buyer, will certainly notice how simple the process can be.

You can check your eligibility for the program right here on our site.

Top Benefits Of USDA Loan Program

You'll enjoy lots of outstanding benefits when you choose a USDA loan for your new home. You qualify with flexible credit and income requirements that are much easier and faster to meet than private loan requirements.

One of the biggest reasons that buyers love USDA loans is the fact there is no down payment. In most cases, you are also able to finance your closing costs, so you can move into your home without spending any money out of pocket.

The structure of the USDA loan program makes it easy for you to lower your mortgage bills and save money so you can put your funds toward your loan principal or make any repairs you may wish to make sooner after moving into your home.

Underwriting guidelines for USDA loans are much more relaxed than typical private loans and you can qualify even if your credit history is not perfect. If you havesteady income and can commit to payments, you may be able to qualify.

USDA Guaranteed home loans provide an affordable and friendly option for low income buyers who are living in rural areas. The USDA loan program is also the only current federally backed loan program offering zero down payment options.

If you find that you do not qualify for a USDA loan for any reason, then you may still qualify for an FHA loan or for other types of loans that are also backed by the U.S. government.

Eligibility For Your USDA Home Loan

The most important eligibility factor for the USDA home loan is making sure that your new home is in a defined rural area that qualifies for the program. A rural area is usually populated by less than 25,000 people.

Many rural areas are located within a relatively short distance of a major city.

In addition to making sure that the area and the property qualify, the borrower must meet some basic qualifications as well. Some of the most important of those are listed below:

  • The borrower must have a steady income of up to 115% the median local income to qualify
  • The borrower must have a fair credit history with no major adverse credit events in 12 months
  • The borrower must be unqualified for standard private loan financing at 20% down payment
  • The borrower must not have delinquencies on any debt, whether the debt is tax related or not
  • The borrower must not have any property liens related to any debts owed to the government

There are two formulas that are used to make sure that the borrower qualifies under the income requirements. Total housing expenses must not exceed 29% of gross monthly income, and total monthly debts must be 41% of that income or less.

Even people who are not buying their first home may qualify for a USDA home loan!

Making Your USDA Home Loan Purchase

Buying with a USDA home loan means that you get to enjoy competitive rates with a federally backed home loan that is highly attractive to a wide range of lenders. The rate terms are fixed, providing you with 30 years to pay off your home.

There is only one major fee associated with the loan, a one-time funding fee. Since you don't have to spend much on fees, you can concentrate on paying off your home loan much sooner.

When getting a USDA home loan, you can choose from a wide variety of qualified property:

  • Single family dwellings (houses)
  • New manufactured homes (mobile homes)
  • Many condominiums, with prior approval
  • Townhomes and modular homes

You do not have to have any specific credit score in order to qualify. Most borrowers have a credit score of 640 or higher, but even people without conventional credit may qualify. Those with higher credit scores can enjoy a more streamlined lending process.

Streamline Refinancing With The USDA

Do you have an existing USDA mortgage loan? If so, you probably qualify for the USDA Streamline Refinancing program. Streamline Refinancing is available when you will get a reduced interest rate or monthly payments by refinancing.

If you continue to qualify for your USDA loan and you have made adequate payments on it, you are very likely to qualify for Streamline Refinancing. This makes it very simple to get better rates. A non-streamlined option is also available.

Fundamental requirements for Streamlined Refinancing include:

  • You need to already have a USDA-backed mortgage loan
  • You have to benefit financially from the loan refinancing
  • You need to be current on your USDA mortgage loan

With the USDA Streamline Refinance loan, you'll benefit from better rates on a fixed rate basis and can go on paying off your mortgage where you left off. You'll enjoy low monthly payments and mortgage insurance, few or no closing costs, great rates and no pre-payment penalty.

A Streamline Refinance can be performed without a new appraisal on the home. Other closing costs are generally consistent with a purchase guarantee. Our team can help you reduce costs!

Frequently Asked Questions

Q:

"Is it possible to refinance using USDA refinancing with a conventional mortgage?"

A:

USDA refinancing is only available for those who have a current USDA loan.

Q:

"Can I refinance a USDA property if I am currently renting it to another person?"

A:

All borrowers on the USDA mortgage loan must be occupying the property at the time you apply for refinancing in order to qualify.

Q:

"When will the USDA Streamline Refinance pilot program be over?"

A:

This information is subject to change at any time. Contact our team to find out current information about Streamline Refinance for your USDA loan.

Q:

"Can I borrow more money for renovations or other purposes?"

A:

No, borrowers may not borrow additional funds or receive cash in a USDA refinance.

History Of The USDA Home Loan Program

The USDA home loan program provides the first true "no money down" federally backed home loan program. It helps to strengthen the real estate market in rural communities by facilitating competitive rates for home purchases.

Anyone who plans to live full time in a designated rural community and who has moderate or low income compared to the community baseline may be able to qualify for a USDA loan. The USDA has designated a specific funding amount for every qualifying community in the country.

As with any other loan program, there are eligibility standards that all borrowers must meet. However, these are more flexible and easier than average. Our team can help you learn whether you qualify and get you the best rates.

Speak With A USDA Lender Today And
Get Pre-Approved For A USDA Loan

Learn More About USDA Loans Get Started