What are USDA Rural Housing Loans?
Backed by the US Department of Agriculture, USDA Rural Housing Loans are available to borrowers in rural parts of the country. This program was established with the intention of promoting home ownership and community growth in under-developed areas, and as a result, offers many desirable terms for home buyers.
Benefits of USDA Rural Housing Loans
- Low down payment requirement, up to 100% financing available
- Low mortgage rates
- Can be easier to qualify for compared to other programs
- Seller may contribute to closing costs
- No pre-payment
Available FHA Loan Options
- Purchase Loans – Buy a home with little to no out-of-pocket expenses. USDA loans allow for 100% financing for qualified borrowers and seller-paid closing costs up to a certain percent of the loan amount
- Refinance Loans – USDA offers a rate and term refinance option. If you are moving from one USDA mortgage into another you may qualify for a Streamline Refinance that has reduced fees and a more simplified process
- Construction Loans – USDA new construction loan programs allow the costs of the purchase or refinance of the lot, the construction costs of your home, and the long-term financing to all be included in one loan
- Renovation Loans – USDA renovation loan programs allows for the remodeling or repair costs on a property in need of repairs or renovations to be included in the financing, whether you’re purchasing or refinancing your home
Available USDA Loan Programs
USDA Single-Family Guaranteed Housing: This USDA Loan program is USDA’s standard financing program allowing qualified borrowers to purchase or refinancing a USDA qualifying property. The USDA Single-Fmaily Guaranteed Housing programs allows up to 100% of the purchase price or home value, plus certain closing costs to be included in the loan.
USDA Streamlined Assist Refinance: The USDA Streamlined Assist Refinance Loan gives current USDA loan borrowers an opportunity to get lower monthly payments. With a simpler application process, this refinance option features no debt-to-income limitations, no inspection or appraisal, and no loan-to-value requirements.
USDA One-Time-Close Construction: The USDA One-Time Close (OTC) Construction Loan allows borrowers to combine up to 100% of the cost of the lot purchase or refinance, the construction costs of the home, and permanent mortgage into one loan.
USDA Renovation: The USDA Home Renovation Loan allows for the remodeling or repair costs on a property in need of repairs or renovations to be included in the financing, whether you’re purchasing or refinancing your home.
USDA Repair Escrow: The USDA Repair Escrow allows for financing of minor renovation costs to a home that meets FHA’s requirement but where repairs could not be completed due to inclement weather conditions, and the livability of the home, the health and safety of the occupants is not affected.
- Household income limits apply and are based on location.
- Only available in certain areas. Talk to a specialist today to see if it is an option for you!
- Buy a home with no money down (primary home).
- Refinance up to 100% of your primary home’s value.
Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.
**Premier Lending Group, Inc. is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.