(210) 987-8943
USDA Rural Housing Loans
About USDA Loans
USDA rural housing loans, backed by the U.S. Department of Agriculture, are designed to promote homeownership in rural and suburban areas.
These loans offer 100% financing, making them an affordable option for low-to-moderate-income borrowers looking to purchase a primary residence, who might not qualify for conventional loans or have the same lending options as those in larger cities. The government insures these loans and sets guidelines similarly to the FHA loans. The loan is set for a 30-year fixed rate home loan, and requires a small monthly mortgage insurance premium.
There are income and location eligibility requirements.
Get more information about the home buying process
Some Key USDA Loan Characteristics
No Down Payment: USDA loans offer 100% financing, allowing buyers to purchase a home without a down payment.
Low Interest Rates: Competitive rates compared to other loan types, saving borrowers money over time.
Flexible Credit Requirements: Designed for borrowers with a range of credit histories.
Affordable Mortgage Insurance: USDA loans have lower mortgage insurance premiums compared to FHA or conventional loans.
Easy Refinancing: May qualify for a streamlined refinance with no appraisal required and a lower guarantee fee
Considerations for Borrowers
Income Limits: Borrowers must meet income eligibility requirements based on household size and location.
Location Restrictions: The home must be located in a USDA-eligible area, typically rural or suburban.
Loan Purpose: USDA loans are intended for the purchase or construction of single-family homes; they cannot be used for investment properties.
Closing Costs: While no down payment is required, borrowers must plan for closing costs unless the seller or grant programs cover them.
Processing Time: USDA loans may take longer to close due to additional government approval steps.
USDA Loan Qualifying
USDA loans feature straightforward qualifying requirements:
Credit Score: A minimum score of 640 is generally required, but lenders may allow exceptions.
Income Eligibility: Household income must not exceed the limits set for the specific area.
Debt-to-Income Ratio (DTI): USDA loans typically require a DTI of 41% or lower, with exceptions for strong credit profiles.
Employment History: Stable employment and consistent income over the past two yes are preferred.
Property Eligibility: The home must meet USDA property standards and be located in an eligible area.
USDA loans provide a pathway to affordable homeownership for eligible borrowers in rural and suburban communities. Contact us today to learn more about USDA loans and find out if this program is the right fit for you. Reach out to our team at (210) 987-8943. We are happy to answer your questions and would love to work with you!
Copyright ©2021 | Candy Williams Home Loans | NMLS# 187126 | Licensed to do business in Texas
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.
Corporate | NMLS ID NMLS# 1660690 | Corporate Address : 3100 W Ray Road #201 Office #209 Chandler, AZ 85226
Copyright ©2021 | Candy Williams Home Loans | NMLS# 187126 | Licensed to do business in Texas
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.
Corporate | NMLS ID NMLS# 1660690 | Corporate Address : 3100 W Ray Road #201 Office #209 Chandler, AZ 85226