It’s not “just for farmers,” millions can now qualify
What is a USDA Loan? USDA home loans are government-backed loans that are offered to borrowers in rural areas. These areas are determined by the US Department of Agriculture and are usually restricted to areas with a low population density—generally towns of no more than 25,000.
You can use a USDA home loan for both a purchase and refinance. The refinance must be on your primary residence and there is no “cash out” option.
Some benefits of a USDA home loan are
- 100% financing (Zero money down)
- No monthly mortgage insurance
- Gifts allowed for closing costs
- It’s not “just for farmers,” millions can now qualify
Who Qualifies for a USDA Mortgage?
USDA Loans used to be considered “farmers loans” but that is simply not the case anymore. Just about anyone looking to purchase a home outside a major metropolitan area can qualify for a USDA Loan.
Some of the eligibility standards that determine if you qualify for a USDA loan for your home include what county and zip code the home resides in, your current income and credit history, as well as the number of dependents you can claim. Because these guidelines are very specific, it is important to work with a company that has experience dealing with USDA government financing to help determine your eligibility. Directors Mortgage is an expert with USDA Loans.
Contact a Directors Mortgage Specialist today for more details on USDA Loans.