USDA Rural Housing Loans

Please note that the rates below are not for USDA rural housing loans. Please use the survey to contact companies serving your area to find out if they offer USDA mortgages and/or other low money down solutions.

USDA rural housing loans are geared toward homebuyers who live in rural areas of the Country and who have little to no money to put down. USDA rural housing loan programs offer flexible, common sense underwriting guidelines, relaxed credit requirements, no PMI (private mortgage insurance) options, the ability to finance closing costs into the loan amount, lenient seller concessions, and rates that are comparable to, if not better than, conventional fixed rate mortgage programs.

You may also check the USDA web site to confirm the property eligibility and income limits for the subject property and area (you will see those links on the left navigation). In today’s shrinking credit market, USDA rural housing loan programs are one of the only 100% mortgage financing options in the marketplace. Although some companies do not currently offering USDA home loans, they may offer other popular low money down mortgage solutions such as VA mortgages and FHA loans. Call the companies in the survey for details.

USDA Rural Housing Loan Program Highlights
(subject to change):

• Loans may be for up to 102% of the appraised value or sales price (whichever is lower). A one time 2% guarantee fee can be included in the loan which is how the loan can go up to 102%. This feature allows buyers to finance this expense into the loan amount versus paying it out of pocket.
• No PMI (private mortgage insurance)
• Secure, fixed-rate 30 year mortgages
• Sellers can assist with paying the buyer’s closing costs
• Little cash reserves needed for qualified borrowers

Partial List of Eligibility Guidelines for USDA Rural Housing Mortgages

• Homebuyers must be United States’ citizens, qualified aliens, or legally admitted to the U.S. for permanent residence.
• Adjusted annual household income cannot exceed the moderate income limits for the area. A family’s size and child care considerations may increase chances for qualification if deductions are applicable.
• Primary residences only
• Home must be located in rural areas.