Welcome to USDA Mortgage Hub, a leading authority on 100% USDA Rural Housing loan information. We are proud to serve home buyers in all 50 states across the U.S.
The USDA home loan is a Government-insured mortgage that allows home buyers to purchase a home with NO money down. USDA is one of the only NO down payment mortgages offered today for a home purchase. The USDA Rural Development program is designed to provide 100% home financing to encourage growth in America’s rural and outlying suburban communities.
The program is especially good for first time home buyers that find it difficult to save and meet the large down payment requirements for traditional mortgages. Many home buyers are pleasantly surprised to learn exactly what locations are still rural eligible today.
USDA loans (also known as Rural Housing, Rural Development, RD, or 502 Guaranteed) are processed by approved lenders, banks, and brokers and are insured by the United States Department of Agriculture. This program offers home buyers many benefits, listed below are just a few:
- No Down Payment: USDA is one of the few loan programs available in the U.S. today that allow home buyers to finance 100% of the purchase price. This is great for first-time buyers that don’t have the large down payment needed by many other loan programs.
- Flexible Closing Cost Options: In addition to 100% financing, USDA also allows the home seller to pay all buyers closing costs, up to 6%. Home buyers can also roll in their USDA closing costs up to the home appraisal value.
- Secure Fixed Interest Rates: USDA loans are very affordable thanks to low 30-year fixed interest rates, ensuring your mortgage payments will not change each month.
- No Prepayment Penalty: Sell your home, move or pay off your mortgage at any time without worrying about an early payoff penalty charge.
- No Education Requirements: Many first-time buyer programs require a special class or certificate before you can apply, not the USDA loan. Call Ph: 800-743-7556 to get pre-approved and start shopping for a home all on the same day.
- No Home Purchase Price Limit: Many loan programs (like FHA, and Conventional) have loan amount limits, not the USDA loan. Instead, home buyers qualify based on their debt-to-income ratios. USDA generally limits housing expenses to not exceed 30% of the applicant’s gross monthly income.
- USDA Approved Homes: Eligible properties are not required to carry any special designation to be approved. Any single-family home, townhome, or condo that is in good repair and located in an approved location is acceptable. The property to be purchased can be sold by any real estate company, bank, or home seller. Please note: mobile & manufactured homes, vacant land, acreage, and building on your own land are not accepted. Please also note that USDA loans are only for primary owner-occupied homes.
- Lower Mortgage Insurance: With most loan programs, unless you have a 20% down payment, you are likely required to pay monthly mortgage insurance or “PMI”. The USDA monthly mortgage insurance is over 50% less when compared to FHA loans. This is also true with regard to the one-time funding fee government loans require. USDA is only 1%, FHA is 1.75% and VA is 2.15%. Be sure to use the USDA loan payment calculator on the right side to compare.
- Any Eligible Home Buyer Can Apply: USDA loans are NOT reserved exclusively reserved for first-time homeowners. Move-up home buyers are also welcome to apply, primary residence homes only.
Please be sure to visit the USDA Loan Eligibility page above to learn more about important qualifying criteria and frequently asked questions. Applying for a USDA loan is simple, the complete application process is often complete in 30 minutes or less. Contact us today, get pre-approved and start shopping for your dream home all on the same day!
We encourage you to reach out to us 7 days a week by calling Ph: 800-743-7556. For quick service, you can submit the Quick Contact form located on this page (mobile users will find the contact form below) We serve new home buyers and current homeowners Nationwide 7 days a week
*Buyers that already have an active USDA mortgage in process: Please note you will need to contact your lender, mortgage broker, or bank directly for the latest loan status (USDA turn times, closing times, etc)