USDA & RURAL
ABOUT USDA & RURAL DEVELOPMENT LOANS
Home loans guaranteed by the United States Department of Agriculture (USDA) provide affordable financing options for properties located in designated small towns, suburbs and exurbs. This program helps eligible low- to moderate-income families achieve homeownership by offering a no down payment option.
USDA Loans can be an excellent option in lending. There are a variety of reasons why this loan may be good for you, but the bottom line may be its affordability. Since this loan is one of the few that require no money down, it is a popular choice for first-time homebuyers.
USDA Loan Eligibility
Eligibility is based on the property size, location, and condition along with income and other qualifying factors. Some of these requirements include:
- Property must be located in a USDA designated rural area
- Maximum loan limits vary based on location
- Household members can have a total income of up to 115% of the medial income for the area
- Household must be able to afford the mortgage payment, including property taxes, homeowners insurance and the annual guarantee fee payable on a monthly basis
With flexible requirements, USDA loans feature:
- 100% financing + required guarantee fee = 102% of the appraised value
- Low FICO score requirements
- Low-interest rates
- Low closing costs
- Gift funds can be used for closing costs
- 30-year, fixed-rate mortgage
MORE ABOUT USDA & RURAL DEVELOPMENT LOANS
To learn more about USDA and Rural Development Loans, please see the frequently asked questions below.
The USDA Guaranteed Rural Housing mortgage is available for salaried, non-salaried and self-employed borrowers, and is not limited to first-time homebuyers.
- 0% down payment required
- 620 minimum FICO
- Primary residence only
- Fixed-rate financing available at USDA interest rates
- Gift funds allowed for closing costs
- New construction financing options available
Fairway Independent Mortgage Corporation loan professionals will be there for you every step of the way while you are applying for a USDA & Rural Development loan. Contact us to get started today!