Our Special Financing Programs provide affordable homeownership opportunities which in turn creates thriving communities and improves the quality of life in rural areas. The USDA loan options help many first-time buyers and low-to-moderate income families make homeownership a reality.
We are your experts when it comes to home financing options. Contact us today to find out more information and to see if you qualify for one of our Special Financing Programs!
See if you qualify
Contact us today to begin the application process and see if you qualify for one of the USDA home loan programs!
USDA loan programs provides homeownership for many who otherwise may not be able to qualify for home financing. A USDA loan is a home loan that is guaranteed by the United States Department of Agriculture. It offers very low and competitive interest rates on home loans to borrowers with no down payment requirements.
A great benefit of the USDA home loan is you don’t need perfect credit. A borrower’s credit may have blemishes from collections or previous late payments. For others, it may be a complete lack of credit or no active credit accounts. Having a credit score of 640 or above usually helps eligible borrowers secure the best rates with zero down payment.
The USDA home loan has many benefits for rural homebuyers. Being able to secure financing without a down payment is among the major advantages to first-time homebuyers wishing to use a USDA home loan. The USDA home loan is one of the last remaining mortgages in the U.S. that does not require a down payment.
Low- and very-low-income applicants may be eligible for payment assistance to increase their repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment and is determined by the adjusted family income.
No down payment is required for a USDA loan. Obtain 100 percent financing without having to spend years saving for a down payment.
Unlike other loan types, USDA loans don't have private mortgage insurance (PMI). USDA loans have the lowest funding fee of all government-backed loans.
There is no minimum credit score for USDA loans; however, a score of 640 or higher will speed up the application process.
Thinking about buying your first home? The home buying process is simpler than you might think. Call us today to see if you qualify for our Special Financing Programs available to first-time homebuyers.
Do you know someone that deserves home ownership? In this episode of "Between the Studs", we share some amazing success stories and discuss the financing options available to new homebuyers that offer low monthly payments based on income (that are often less than renting), competitive interest rates, and zero money down to qualified buyers. Contact us today for more information!
USDA Loan Programs
First-Time Homebuyers and USDA Home Loans
Types of USDA Loans
The United States Department of Agriculture (USDA) offers two different types of home loan programs. Income and household size typically determine which program works best for the applicant. Competitive and/or below market interest rates, minimal closing cost, and longer mortgage terms provide opportunity and affordability for many homeowners utilizing these programs. These loans are restricted to rural areas. Read below to find out more information about each loan program and see which program works best for you.
502 Direct USDA Loan: USDA funds the borrowers of these loans directly. These loans usually favor low-income and very-low-income individuals or families who can’t access any other type of financing for an adequate residence. Qualifying borrowers’ income must fall at or below the low-income limit in a designated area as defined by USDA. With subsidies, interest rates can be as low as 1%, based on the adjusted household income.
Contact UsGuaranteed USDA Loan: USDA partners with local lenders to offer guaranteed loans. Guaranteed means USDA insures a portion of the mortgage in the event you default on your loan. Therefore, these lenders tend to feel comfortable offering modest loan terms to low-income individuals with less-than-favorable credit scores. These types of loans typically suit low- or moderate-income borrowers. To be eligible for a guaranteed USDA loan, your adjusted household income can’t exceed more than 115% of the median family income in the designated rural area you wish to live in.
Contact UsA USDA loan is a mortgage that offers considerable benefits for those wishing to purchase a home in an eligible rural area. USDA home loans are issued through private lenders and are guaranteed by the United States Department of Agriculture (USDA).
USDA loans provide affordable homeownership opportunities to low-to-moderate income households to stimulate economic growth in rural and suburban communities throughout the United States.
USDA loans open the door to homeownership for many first-time homebuyers who otherwise could not afford a traditional 5-20% down payment. However, the USDA has its own guidelines and requirements, including eligibility requirements for the borrower.
With the USDA loan program, qualified borrowers can purchase a home without a down payment, saving thousands of dollars in upfront costs.
There is no minimum score required by the USDA; however, a score of 640 or higher will speed up the application process.
In most cases, you may be eligible for a USDA loan three years after a chapter 7 bankruptcy discharge and one year after filing for chapter 13 bankruptcy.
You must establish employment to be eligible for the USDA loan and most lenders will require a minimum of two years of steady employment. If you are self-employed, you are eligible, but will be required to provide two years of federal tax returns to verify your income. Retirees may be able to obtain a USDA loan provided they have sufficient stable income.
USDA loans have a one-time upfront fee, known as the USDA guarantee fee, which is 1% of the loan amount. Additionally, the USDA has an annual fee that is currently only .35% of the loan amount and financed into the monthly payments. USDA homebuyers can finance the 1% guarantee fee into the total loan to make for a true $0 down loan.
An individual’s maximum loan amount is based upon their debts, income and ability to repay. The maximum USDA 502 loan amount is $336,500 for rural areas in northeast Indiana, northwest Ohio, and southern Michigan that are within Granite Ridge Builders building territory.
When you hear that the USDA loan is guaranteed, it is in reference to the fact that the USDA insures a portion of each loan in the event the borrower defaults on their home loan. This backing, or guarantee, is what gives lenders more confidence in homebuyers and the ability to extend favorable rates and terms.
Closing costs will vary by lender and location. You will need to ask your loan officer or New Home Specialist for more details.
Ready to get started on your journey to home ownership? You are in the right place and we can't wait to see you through to the finish line.