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  • USDA Loans

  • A USDA home loan is a zero down payment mortgage for eligible rural and suburban homebuyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture.

    There are three USDA home loan programs:

    • Loan guarantees: The USDA guarantees a mortgage issued by a participating local lender — similar to an FHA loan and VA-backed loans — allowing you to get low mortgage interest rates, even without a down payment. If you put little or no money down, you will have to pay a mortgage insurance premium, though.
    • Direct loans: Issued by the USDA, these mortgages are for low- and very low-income applicants. Income thresholds vary by region. With subsidies, interest rates can be as low as 1%.
    • Home improvement loans and grants: These loans or outright financial awards permit homeowners to repair or upgrade their homes.

    How USDA-issued home loans work

    Going one step further in helping prospective homebuyers, the USDA issues mortgages to applicants deemed to have the greatest need. That means an individual or family that:

    • Is without “decent, safe and sanitary housing”
    • Is unable to secure a home loan from traditional sources
    • Has an adjusted income at or below the low-income limit for the area where they live.

    The USDA usually issues direct loans for homes of 1,800 square feet or less, with a market value below the area loan limit. Again, that’s a moving target depending on where you live. Home loans can be as high as $500,000 or more in pricey real estate markets like California and Hawaii, and as low as just over $100,000 in parts of rural America. A loan limit of $216,840 is typical in many areas of the country.

  • Contact us for more information.

  • Accurate Financial Mortgage Group, Inc. - Where mortgages are only the begining