Do I qualify for a USDA Home Loan?
USDA Loan
Have you ever wonder if you qualify for a mortgage? What the requirements are? You may have too many questions but please read carefuly and If you have a questions you can either apply or ask for more information. We are here to help you.
A USDA loan (also called a Rural Development Loan) is a government insured home loan that allows you purchase a home with NO Money Down.
USDA Home Loans offer 100% financing to qualified buyers, and allow for all closing costs to be either paid for by the seller or financed into the loan. USDA offers some the lowest rates of any loan, and you will always have a fixed interest rate. To learn more about Rural Development Loan qualifications and eligibility, fill out a USDA Loan Application. Or if you need more information, visit our Rural Development Loan Resource Section for quick answers to common questions, or call the home loan experts at 1-239-645-4580.
USDA home loan down payment
The down payment requirement — or lack thereof — is why so many buyers choose the USDA loan program. No down payment is required, making it one of the few 100% financing home loans available in today’s market.
The only other widely available zero-down loan is the VA mortgage, eligibility for which is gained by adequate military service.
For civilians, USDA loans are likely the only no-down mortgage option. Following are minimum down payment requirements for all major loan types.
- Conventional loans: 3% down
- FHA: 3.5% down
- VA: 0% down
- USDA: 0% down
Down payment advantage: It would take years for many families to save 3% down or more. During that time, home prices can go up, making saving a down payment even harder. With USDA, home buyers can purchase immediately and take advantage of increasing home values.
Is a USDA loan right for me?
USDA guaranteed loans aren’t right for every buyer. But, any first-time or repeat buyer looking for homes outside of major cities should check their eligibility for the program.
Here are a few advantages:
- Lower down payment than conventional or FHA financing
- Lower mortgage insurance than conventional or FHA loans
- More lenient credit score requirements than for conventional loans
- Unlike VA loans, there is no military service requirement
- The only zero-down loan on the market besides the VA mortgage
When USDA is not the right choice: If you want to buy a home close to the downtown core of a major city, USDA is not right for you. Additionally, if you have a high income for your area, or 20% down available, you will not qualify for USDA. This loan is reserved for those who need it most.