United States Department of Agriculture (USDA) home loans are a zero down payment mortgage for eligible rural and suburban homebuyers. USDA home loans help homebuyers with low or moderate household incomes, low credit scores or a thin credit history. To be eligible, buyers must meet requirements based on income, location, property size and other factors. Check out the USDA Home Loan eligibility in your area. You may be surprised to find just how accessible a USDA Home Loan is.
Major benefits of USDA
- Low rates and monthly fee.
- No down payment required.
- Do not need to be a first-time homebuyer.
- Low credit or 3 years out of bankruptcy or foreclosure accepted.
- Self-employed income accepted.
- No limit except affordability.
- No mortgage insurance required.
- No reserves required.
- Can have acreage and outbuildings.
There are more USDA program requirements outside of what’s listed above, including that the property cannot be income producing, or rented out. The appraisal follows standard FHA guidelines for safety so there can be no chipped paint; there must be smoke and carbon monoxide detectors, handrails on stairs, etc. If the property has a well, you must have the water tested, as this is required by County or State. Additional requirements may apply.
To learn more about USDA Home Loans, please reach out to your First Centennial Mortgage loan officer.