At Premier Funding Network, we are not limited to specific kinds of loans and our toolbox is bursting with options. One useful loan program that is often ignored by other mortgage brokers is the USDA Rural Development Guaranteed Housing Loan, also called the USDA loan.
WHAT ARE USDA LOANS?
USDA loans are mortgages backed the U.S. Department of Agriculture as part of its USDA Rural Development Guaranteed Housing Loan program. USDA loans are available to home buyers with below-average credit, offer 100% financing with reduced mortgage insurance premiums, and feature below-market mortgage rates.
This type of loan is available to both first-time buyers and repeat homebuyers interested in purchasing a primary residence in certain rural and suburban areas. With a USDA loan, buyers don’t have to make a down payment and are required to take a fixed-rate loan. USDA mortgages are currently the only no-money down program available to borrowers that have not served in the military.
For eligible borrowers, the USDA loan offers many favorable terms:
- $0 Down, 100% Financing
USDA loans are one of the last $0 down mortgages with 100 percent financing, meaning minimal out-of-pocket costs to the borrower.
- Relaxed Credit Requirements
The USDA Loan has been designed to provide home buyers with lenient eligibility requirements that help low-to-moderate income families purchase a home.
- Competitive Rates
USDA mortgage rates are often lower than comparable conventional 30-year fixed mortgage rates, allowing eligible borrowers to get a better deal than comparable FHA or conventional loans.
- More Homes Are Now Able To Qualify
The USDA’s definition of “rural” is largely liberal, meaning many properties in small towns and suburbs meet the “rural” requirement. A Premier Funding Network expert can assist homebuyers in determining a home’s eligibility for a USDA loan.
- Reduced Mortgage Insurance Costs
Many borrowers are surprised to find that a USDA loan features lower mortgage insurance premiums than an equitable FHA mortgage loan.
Call a Premier Funding Network specialist at 714 283-9900 to discuss the credit, income and property location eligibility that is required for a USDA loan.
For homebuyers preferring to live outside the noise and congestion of urban areas, a USDA loan can be an inexpensive and excellent mortgage option.