How USDA Loans Work
The USDA home loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture. USDA loans require no down payment and you may finance up to 100% of the property value. With the October 2016 fee reduction on upfront and monthly Mortgage Insurance, the USDA Home Loan has become a better option than FHA.
- Will lend 100% of the purchase price
- Permits financing of closing costs if the market value is higher
- 30 Year term with fixed rates
- Buy a home with ZERO down payment
- Lower monthly Mortgage Insurance (MI) and lower upfront MI Funding Fee than FHA Loans.
- Property must be USDA eligible to qualify. (USDA Loans do not apply to farms.)
- You can pay off your mortgage at any time without penalty
USDA Loan Example: USDA Loan for $137,755 for 30-Years with no down payment and a fixed 4.25% interest rate/4.98% APR has a monthly sample payment of $902.62 (includes taxes, insurance and mortgage insurance)*
USDA Streamline Refinance is available with no appraisal. Contact Equity Resources for more information.