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USDA Financing
Rural Housing

The U.S. Department of Agriculture (USDA) insures loans to home buyers with low to moderate income moving to designated rural areas.

Program Highlights

  • Down payment not required
  • Provides up to 100% financing
  • Best for borrowers with limited assets looking to buy in rural areas. See the eligible areas HERE.
  • Income Limits apply. See income eligibility HERE.

USDA offers three different types of loans:

Guaranteed USDA Loan

USDA partners with local lenders to offer guaranteed loans. Guaranteed means USDA insures a portion of the mortgage in the event you default on your loan. Therefore, these lenders tend to feel comfortable offering modest loan terms to low-income individuals with less-than-favorable credit scores. These types of loans typically suit low- or moderate-income borrowers. To be eligible for a guaranteed USDA loan, your adjusted household income can’t exceed more than 115% of the median family income in the designated rural area you wish to live in. Household income generally includes the combined income of the loan applicant and every adult in the household, regardless if their names are on the loan application.

Direct USDA Loan

USDA funds the borrowers of these loans directly. In other words, your lender becomes USDA instead of a bank. These loans usually favor low-income and very-low-income Americans who can’t access any other type of financing for an adequate residence. Qualifying borrowers’ income must fall at or below the low-income limit in a designated area as defined by USDA. In some areas, the limit falls below $17,000.

USDA Home Improvement Loans

These loans help low-income Americans repair or enhance their homes. Depending on your circumstances, USDA may combine these with grants you don’t have to pay back.

Curious if you qualify?