USDA Loan

A USDA mortgage is a mortgage loan insured by the US Department of Agriculture and available to qualified individuals purchasing or refinancing their home loan in an area not considered a major metropolitan area by the USDA.

• 100% Financing - you can buy a home with no money down. In some cases, you can even finance your closing costs.
• You can refinance your home up to 100% of its value.
• Low Fixed Rate Mortgage Options.
• They are usually easier to get because the Government insures the loan so that there is much less risk to the lender.
• They can be used for Existing Homes, Foreclosures, or New Construction.
• Simple Loan Process.
• No Loan Limit. No Acreage Limit.
• There is No Prepayment Penalty.
• You can use the loan to repair or add to your home.
• Flexible Credit Requirements.
• 
  

Generally, these loans are available to anyone who meets minimum credit guidelines and local area income requirements and is purchasing or refinancing their home in an area not considered a major metropolitan area by USDA.

• They are just for farmers - USDA Loans are not "just for farmers" millions of people from all walks of life already qualify.
• FHA or Conventional Loans are better - USDA Loans often offer better terms than FHA or conventional loans.
• They aren't flexible - USDA Home Loans can be used to buy a new home or refinance to a lower rate.
• Only certain people can qualify - Anyone who meets the income and credit guidelines can be eligible for a USDA Home Loan.
• They are only for rural areas. USDA Loans are available in many areas that most people would not consider rural. For example, according to the US Department of Agriculture, many small communities just outside of metropolitan areas qualify as rural areas.
• They are more challenging to get than FHA or Conventional Loans - This isn't true.  In many cases, USDA Loans are easier to get because the government guarantees the loans.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.