A USDA Loan is a mortgage loan that is insured by the US Department of Agriculture. It is available to qualified individuals who are purchasing or refinancing their home loan in an area that is not considered a major metropolitan area by USDA.
Benefits of USDA Loans
- 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 the value of your home.
- 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 on to your home.
- Flexible Credit Requirements.
Who is eligible for a USDA Loan?
These loans are usually available to anyone who meets minimum credit guidelines and local area income requirements. They are also most often purchasing a home or refinancing their home in an area that is not considered a major metropolitan area by USDA.