USDA Rural Development has partnered with local lenders to help them extend 100% financing opportunities to rural individuals and families. The property itself must meet USDA location and condition requirements. There are many positive aspects to applying for USDA loans if you are not eligible for a Conventional Loan, but there are income limitations and restrictions that vary by different counties and the number of family members that will live in the household. USDA Home loans can be used for the purchase of a primary residence. USDA charges an annual service fee of .35% of the total loan amount, which is paid monthly. USDA also charges an upfront funding fee of 1% of the loan amount. This is a one-time fee and can be rolled into the loan.
Advantages of USDA Home Loans
Who Can Benefit?
Borrowers with lower or no credit scores who can’t qualify for conventional loans.
Borrowers who are looking to purchase homes in smaller towns and out of city limits.
Clients with little or no money for down payment.
First-time homebuyers are looking for more affordable monthly payments.
USDA Home Loans
If the property you are purchasing appraises well above the negotiated sales price, a USDA home loans is the only program that allows the option of financing other applicable closing costs and pre-paid, above the loan amount and guarantee fee.
USA Mortgage Advantage
Number 1 USDA lender in Missouri five years in a row.
Accepts lower credit scores compare many other lenders.
Offers very aggressive mortgage rates.
Offers lower or no lender fees for USDA loan.
Apply for USDA Loans
USA Mortgage Columbia regional office has many locations in Missouri, Arkansas, Illinois, Kansas, Iowa, and nearby areas. We have all the resources needed to make your dream a reality. Are you ready to move forward with your next home purchase? A local mortgage broker will guide you every step of the way. Apply now and find out if you qualify for a USDA rural development (RD) Home loan.
FAQs: USDA Home Loan
USDA home loan income limits vary based on the county the home is located in and how many people will occupy the home.
Any borrower can qualify for a USDA loan as long as they meet all the requirements as some of those include minimum credit requirements, household income limits, and the property is located in a USDA eligibility area.
USDA rural development (RD) is a 100% home loan, so there is no down payment required.