USDA Loans: Not Just For Farmers
Updated January 2017
The USDA loan program often brings farmers to mind – but many more people than just people who live in the country are getting USDA loans and seeing what a great loan program it can be. Many homeowners who are shopping for a home outside a major city are surprised to learn that many properties qualify for a USDA loan even though they can hardly be considered “rural”.
USDA Loan Highlights
- A USDA loan is backed by the USDA
- True 100% / No Money Down financing
- Can be used to buy a new home or refinance an existing mortgage
- Many people can qualify – it is “not just for farmers”
- Who Can Qualify for a USDA Loan?
USDA Loan Eligibility
USDA loan eligibility is determined by property, so depending on what zip code and county the property is located it may be eligible for a USDA financing. When qualifying for a USDA loan, it is very similar to qualifying for a FHA loan – it is important to have a current income that you can document, a decent credit history and a demonstrated ability to repay the loan. Not all lenders have experience helping people with USDA loans, so it is important that you choose a lender with the experience and underwriting capability available in house for USDA loans.
Facts About USDA Loans
- $0 down, 100% financing is available
- In 2017, the USDA will provide direct and guaranteed loans supporting 43,000 producers
- Since 2009, the USDA has made loans totaling $33 billion to farmers and ranchers
- Designed to encourage growth in rural areas
- USDA loans come from USDA approved lenders and backed by the government
- Terms as long as 38 years allow for low monthly payments
- Lower income families or people with less than perfect credit can still qualify
USDA Streamline Refinance Pilot
If you currently have a USDA loan and you are interested in refinancing it, you may be eligible for the USDA streamline program. It is currently a pilot and is being done in certain states and is helping people save on their mortgage. Learn more about the USDA streamline loan.
Get The Best USDA Loan For You
Getting the best deal on a USDA loan is easy – shop multiple lenders! Shopping lenders for the USDA loan is easy, many lenders are good at providing low rates and great service. Get a free quote on a USDA loan today and then decide which lender is right for you to work with.