A USDA Loan is a mortgage program backed by the U.S. Department of Agriculture (USDA) that provides affordable financing options for rural and some suburban homebuyers.
Eligibility is based on factors such as location, income, and credit history. Borrowers in designated rural areas and meeting income requirements may qualify.
Benefits include no down payment requirements, potentially lower interest rates, and flexible credit guidelines.
No, USDA Loans are intended for owner-occupied primary residences only.
Eligible properties include single-family homes and certain approved condominiums located in eligible rural areas.
Income limits vary based on the location of the property and the number of household members.
Yes, the upfront guarantee fee can be financed as part of the loan amount, allowing you to avoid an upfront out-of-pocket payment.
USDA Loans require an appraisal to determine the property's value and ensure it meets USDA's property standards for safety and habitability.
Yes, you may be able to use gift funds from family members or other sources for the down payment.
Yes, USDA Loans require both an upfront guarantee fee and an annual fee for mortgage insurance to protect the lender.
To apply for a USDA Loan, you'll need to work with an approved lender and provide required documentation, including income verification and property details.
Yes, the USDA offers a streamlined refinance program for eligible borrowers who currently have a USDA Loan.
The U.S. Department of Agriculture (USDA) guarantees USDA Loans, providing lenders with added security and allowing them to offer more favorable terms to borrowers.
In general, borrowers are limited to one active USDA Loan at a time. Certain exceptions may apply based on specific circumstances.
Yes, USDA Loans are specifically designed for properties located in eligible rural and suburban areas as determined by USDA maps and guidelines.