USDA Loans

What Are USDA Loans? 

A USDA Loan is a home financing program that helps low to moderate income borrowers achieve homeownership while simultaneously fostering development in less-populated communities.

Benefits of a USDA Mortgage

• Eligible properties include single-family homes, new construction, modular homes, planned unit developments, new manufactured home, and eligible condominiums.
• Zero down payment required.
• No minimum credit score requirement & non-traditional credit may be used to qualify.
• A single, upfront mortgage insurance premium is required, which can be financed into the loan itself; no monthly mortgage insurance premium.

USDA Eligibility

In order to use a USDA loan, the property must be located in a USDA-eligible area. Since one of the program’s goals is to help increase homeownership in less developed parts of the country, USDA financing is only available to homes in certain USDA-approved zones. If you already have a home in mind, you can check to see if it is eligible for USDA financing by looking it up on the USDA Property Eligibility Map.

Income Limits

Geared toward low or moderate income households, it is possible to earn too much to qualify for this loan. The best way to determine if your income falls within the USDA limits is to speak with a mortgage loan officer.