Rural Housing
- A USDA rural mortgage is a home loan guaranteed by the U.S. Department of Agriculture (USDA) for eligible properties in rural areas.
- USDA loans offer 100% financing, meaning no down payment is required for qualified borrowers.
- USDA loans have no mortgage insurance requirement, which can save borrowers money on their monthly mortgage payments.
- USDA loans have flexible credit and income guidelines, making them accessible to borrowers with less-than-perfect credit or lower income.
- USDA loans have fixed interest rates, and terms typically range from 15 to 30 years.
- USDA loans have no prepayment penalty, which means borrowers can pay off the loan early without incurring any fees.
- USDA loans can only be used to purchase a primary residence in eligible rural areas, as defined by the USDA.
- USDA loans have income limits based on the number of people in the household and the location of the property.
- USDA loans require a one-time guarantee fee, which can be financed into the loan amount.
- USDA loans have property eligibility requirements, including that the home must be located in an eligible rural area and meet certain minimum property standards.
- USDA loans offer counseling and support services to help borrowers navigate the homebuying process.
- USDA loans can be a good option for borrowers looking to purchase a home in a rural area and who meet the income and property eligibility requirements.
Requirements
Down Payment: None
Terms: 30 years, fixed rate
Credit Score: 600 minimum
Mortgage Insurance: No
Maximum Loan Limit: *Up-Front Guarantee Fee financed into the loan.
Yes, varies by county
