If you’re buying a home in a rural community, you could qualify for a no-money-down financing program through the Rural Housing Service. This is an agency of the U.S. Department of Agriculture (USDA). USDA loans offer flexible downpayment funding options, making homeownership affordable!
LOAN PURPOSE: Purchase or Refinance.
TERM: 5YR TO 30 YR.
INTEREST RATE: Vary.
MINIMUM FICO: 640.
PROPERTY TYPE: Single Family Home.
Does USDA finance the property?
A USDA Guaranteed Loan is a government-backed loan where the USDA guarantees the loan when you work with an approved lender. Contact an FOA advisor for details about USDA loan programs.
Can I choose any rural area to qualify for a USDA loan?
The primary residence must be located in an eligible rural area. Contact your FOA advisor to determine if your property address falls into an USDA suitable area.
How much is mortgage insurance?
Your mortgage insurance premium is less than what you would pay for a conventional loan or FHA loan. It’s comprised of an upfront gauranteed fee of 1% of your loan amount and a annual fee 0.35% of your loan amount.
Can I get a USDA loan for a second home or rental property?
USDA loans are for homeowners who will use the property as their primary residence. You can purchase a condo, manufactured home, single family residence, or planned unit development with a USDA loan as long as it is located in a USDA eligible area.