When considering USDA Loans, keep in mind that they offer versatile options such as Fixed Rate or Adjustable Rate mortgages. Additionally, you could qualify even with less than perfect credit. Buying a home with minimal or no down payment can open doors for buyers who might not otherwise afford to become homeowners. Fortunately, there are programs available today that can assist buyers in qualifying for a mortgage with a very small down payment, including the lesser-known USDA Single Family Housing Guaranteed Loan Program.

What is a USDA home loan?

The USDA program, administered by the United States Department of Agriculture, does not provide direct lending but guarantees loans made by private lenders. Similar to VA and FHA loans, USDA loans reduce the risk for lenders, allowing for lower down payment requirements.

Who can use the USDA program?

• The USDA loan is not restricted to agricultural settings; it aims to assist low and moderate-income households in eligible rural areas.
• Applicants must meet income criteria and intend to use the home as their primary residence in a qualifying area.
• Properties can be checked for eligibility, and the loan can be used for new, existing, or homes requiring renovations.

How USDA Loans Work

• Purchase a home with as little as 0% down payment.
• Fixed-rate terms of 30-, 25-, 20-, and 15-years available, with a 5-year adjustable rate mortgage option.
• No monthly Private Mortgage Insurance (PMI) required.
• USDA loans are overseen by the U.S. Department of Agriculture.
• No pre-payment penalties for paying off the mortgage early.

Qualification Requirements

• Income limits based on location apply.
• Available only in specific areas; consult with a specialist to confirm eligibility.
• Purchase a home with no money down (primary residence).
• Refinance up to 100% of the primary home’s value.

Have questions?  Give us a call! One of our mortgage specialists would be happy to answer all of your questions.

Luxe Lending, LLC is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.