USDA Loans

The USDA believes that helping families in rural areas become homeowners creates stronger communities and a better quality of life. It does this through its Single-Family Housing Guaranteed Loan Program for lower to moderate income families.

A USDA home loan is a competitively priced option that helps to make purchasing a home more affordable for lower income individuals living in designated rural areas. The U.S. Department of Agriculture backs USDA loans. This government backing means lenders can offer lower interest rates in many cases. If you qualify, you can buy a home with no down payment, although you’ll still have to cover the closing costs. This is a great option for families with good credit and lower Debt to Income ratios.

The USDA loan is for primary residence only and there are income limits. All USDA loans come with an upfront and annual guarantee fee. Guarantee fees are similar to mortgage insurance and go toward funding the USDA loan program. The annual fee is added to your monthly payment and lasts for the life of the loan.