First Time Buyer Program

First Time Home Buyer Help

This page updated and accurate as of July 12, 2026 USDA MTG HUB

First time buyers often need a lot of assistance since the home buying process is new, and a sometimes frightening to them. It’s easy to make quick (and often bad) decisions when you are purchasing a home for the first-time. In order to make sure things go smoothly, there are some things all first time home owners should know in 2026:

Get Your Mortgage Pre Approval Letter Before Looking At Houses

A most important part of buying a home is knowing if you can get approved for a financing, and more importantly…how much you can afford to purchase. Unless you are paying cash for the house, you need to understand the different mortgage financing available, and what loan option best fits your needs.

100% USDA mortgage, FHA loan, VA loan, Conventional loan, etc. Required down payment, loan terms, money needed for closing costs – these are all important things first time buyers need to know in advance. Furthermore, home sellers and realtors will often times require buyers to get pre approved before considering any offers. Contact us 7 days a week to discuss all your loan options.

New Loans Before Home Buying

Taking on new debt like a auto loan, etc is a quick way to disqualify yourself for a home purchase. Your debt to income ratios play an important role on how much you get pre approved for. Thinking about adding a new $500 per month car loan? it could decrease your home approval amount by more than $60,000. Seems mind boggling doesn’t it? Buyers are often surprised how big the impact of debt can be on their home loan approval amount. If you need to make a large purchase like a auto, hold off until after your home purchase is closed.

Find A Good Realtor

Like your mortgage lender, your realtor is equally as important. Make sure you are working with a proficient realtor local to your neighborhood. Realtors play a big role in the contract and closing costs negotiations. The best part is a realtor doesn’t cost the buyer anything – so take advantage. Please reach out to us if you need a Realtor recommendation in your area, we would be happy to help.

Skipping Home Inspection

Some first time buyers may want to cut down on costs by NOT getting their home inspected. Most home loan programs actually don’t require this unless serious health or safety issues are discovered by the appraiser. While skipping the home inspection may help lower some costs in the beginning, it’s a very bad idea that could come back to haunt you later.

Getting a home inspected right before or after your purchase gives you a full overview of homes overall condition, all the work that has to be done on the property. The costs of a home inspection for most entry level homes in the U.S is about $500-$650 – small price to may when you are talking about the biggest investment of your life.

I Read It On The Internet – Must Be True?

Online websites are generally a good source when you are looking for basic information, but often, this is not all the information you should have. Make sure you have phone conversations with real people (realtor and mortgage company) so you fully understand all the details of your agreement. You need to understand the entire home purchase process before searching for properties. In addition it’s important to remember that all markets are different. What you read about a California housing market or loan program may not apply to Texas, etc.

Need to speak to a loan specialist? We are hear to help answer any questions you have about government home loans across the U.S. 7 days a week, please call or just submit the Quick Contact form on this page.

100 USDA Loan Washington State

This page updated and accurate as of July 12, 2026 USDA MTG HUB

USDA Rural home loans are one of two last remaining 100 percent home loans still available in Washington State. The other option is a VA mortgage which requires current or past military duty. As with any mortgage, there are groups of specific loan qualifying requirements that must be met before an applicant is approved. USDA Loan eligibility requirements in 2026 have a few primary requirements:

USDA Credit Requirements

When applying for a USDA rural loan, the mortgage company will pull the borrower’s credit report from all three credit bureaus. This is called a tri-merge credit report. The lender then looks at credit scores and the credit history to determine if the applicant is eligible, credit-wise.

To get an approval, the borrower must to have a middle credit score of at least a 620 and have no late housing payments for at least one year. Keep in mind that a 620 + credit score does not automatically guarantee loan acceptance. If a borrower had a bankruptcy or foreclosure in their past, they must show that an acceptable amount of time has passed since then regardless of how high the credit score.

USDA loan credit requirements use the following conditions for approval:

Middle FICO credit score of 620 or above.
No late payments in the last year.
No outstanding judgments in the last year.
All bankruptcy payments made on time during the last year (Chapter 13).
At least three years passed since a foreclosure or bankruptcy (Chapter 7).

USDA Debt-to-Income Ratios

The first DTI ratio used by USDA loan qualifications is known as the “Top Ratio”, or “Front Ratio”. This ratio measures the borrower’s total income against the new housing payment including principal, interest, taxes and insurance (PITI). To qualify, the proposed new payment PITI cannot exceed 34% of the borrower’s income.

The second DTI ratio, known as the “Bottom Ratio”, “Back Ratio” or “Total Debt”, weighs the borrower’s total debt load, including the new housing payment against the borrowers, total income. To qualify, the total of the borrower’s new proposed monthly debt load, including housing payments, credit cards, car notes and student loans cannot exceed 42% of their total documented income.

Maximum Household Income: Washington State

And since USDA loan guidelines also have maximum limits set for borrower incomes, they must also show that they don’t make too much money to qualify. The more popular Section 502 Guaranteed Loans contain maximum income limits of 115% median household income for the area. Maximum income limits vary from county to county, please read more about USDA income limits here. Formulating USDA loan income eligibility can a little tricky, so it’s smart to find an experienced USDA mortgage lender to assist you. Remember, these income limits go by all income producing members in, not just those applying for the mortgage.

In review, the following income and employment guidelines must be followed for approval:

The applicant must have a dependable two-year employment history.
The applicant must meet USDA debt-to-income requirements of 29/42 using documented income.
34% Top Ratio – The new proposed housing payment with PITI may not exceed 34 percent of the applicant’s combined monthly income.
42% Bottom Ratio – The applicant’s proposed new monthly total debt load, including new housing payment, may not exceed 41 percent of their combined monthly income.
The applicant’s adjustable income must be less than maximum allowed income by USDA RD for their area.

Approved USDA Homes Washington State

For a property to be eligible for a USDA, it must be located in an approved rural area, as defined by the USDA. The application of “Rural Area” can be quite loose, and there are thousands of towns and suburbs of cities across America that are eligible for USDA financing.

In general, areas approved for USDA loans are located outside the limits of cities and towns with a population of 10,000 people or more. Properties located in towns with a population of less than 10,000 may also be considered eligible. To be certain if a property is eligible for a USDA home loan, applicants can check the address of the subject property on the USDA Property Eligibility Website. Many locations are still deemed “Rural” and approved USDA locations – outside the immediate Seattle, Tacoma and Olympia have locations USDA approved.

The subject property must pass an appraisal inspection by an approved appraiser to obtain USDA financing. The appraisal requirements for USDA loans are very similar to those for FHA loans. The requirements are so similar, in fact that an approved FHA appraiser will perform the USDA property appraisal.

The appraiser will make a value assessment of the property, which must meet or exceed this proposed loan amount. He or she will also look for other things about the home that could create problems such as structural issues, a leaky roof, missing paint and plumbing problems. Homes with in-ground swimming pools are not eligible for USDA home loans.

USDA Loan Costs and Fees

USDA loan fees are extremely competitive when compared to other low down payment mortgage programs. There are two fees involved with having a USDA loan, both of which can be paid over time.

The first fee is known as the Up-Front Guarantee, which is figured by calculating 1% of the proposed loan amount and then adding that figure to the loan balance to be paid over time. For example, if your proposed loan amount is $100,000, the Upfront Guarantee Fee would be $1,000, which is rolled into the principal balance for a total mortgage amount of $101,000.

The second fee is the Annual Fee, which acts in the same way as monthly mortgage insurance. The annual fee is tallied each year by calculating 0.35% of the remaining principal balance. That amount is then divided by 12 and added to each monthly payment. This cost is more commonly known as PMI.

In recap, the fees charged by USDA Rural Development can be outlined as follows:

Upfront Guarantee Fee equals 1% of the loan amount for purchase and streamline refinance
Up Front Fee can be rolled into the home buyers loan amount
Annual Fee equals 0.35% of the remaining mortgage balance, which is divided by 12 and added to monthly payments.

Appraisal Fees, Inspection Fees, Survey Fees and Pest Inspection Fees
Lender Origination Fees and Discount Points
Closing Costs such as State and Local Taxes, Recording Fees, Title Fees, and Escrows

One of the biggest advantages of USDA loans is the ability for the seller to pay all of the buyers closing costs, thus allowing a buyer to close on a home with little to NO money out of pocket.

Have Questions? Please submit the Quick Contact form at the top of this page. Happy to serve home buyers across the U.S. including WA: Seattle, Spokane, Tacoma, Vancouver, Bellevue, Kent, Everett, Renton, Yakima, Federal Way, Spokane Valley, Kirkland, Bellingham, Kennewick, Auburn, Pasco

USDA Closing Costs 2026

This page updated and accurate as of July 12, 2026 USDA MTG HUB

Home buyers often want to know what they can expect to pay in USDA closing costs when obtaining an RD loan. Generally speaking, for a home purchase, buyers can expect to pay 3-6% of the sales price for closing costs and pre-paid tax/insurance escrow.

In most states, the seller will have “customary” closing costs that they will pay and the home buyer will have their customary costs. It’s important to note, this does change from state to state, and certain closing costs are not required to be paid by any given party.

One nice benefit of a USDA mortgage is the flexibility it allows regarding closing costs. First, the sellers are permitted to give credit (concessions) for

the home buyer’s closing costs. USDA Rural Housing will allow the home seller to pay up to 6% of the buyer’s closing costs. These USDA closing costs and escrows can be negotiated into your purchase contract and paid by the seller as part of the deal.

In certain cases, the seller may not want to pay any closing costs for the buyer. Maybe the home being sold is a short sale, REO or bank-owned. In these cases, USDA will permit a second option for the home buyer who wants to close with minimum out-of-pocket money.

The second option for closing costs involves including the costs in the cost into your new loan, basically financing the closing costs. This option has nothing to do with the home seller. USDA will permit any pre-approved buyer to roll in their closing costs into their loan if the home’s appraised value supports the increase. Your new home must appraise high enough to use this option.

Example: Let’s say you purchase a home for $150,000 – 100% USDA financing.

Home purchase price – $150,000

Closing costs needed from the buyer to close – $5,500

Appraised value – $156,000

In this example, it would be okay to roll in all of your $5,500 USDA closing costs into the new loan since the home appraisal supports it. Your total loan amount would be $155,500 plus the 1.0% USDA guarantee fee. Note: the 1.0% USDA guarantee fee is always allowed to be included in the buyer’s loan regardless of how high the appraisal is. This is great, especially for first time home buyers that want to purchase a home but have limited savings for closing costs, etc.

Now you have your USDA contract fully approved and closing costs are taken care of as well. What other closing expense should the home buyer expect to pay? Generally, you will be required to pay an earnest money “good faith” deposit when you write your purchase contract. This amount is usually around $1,500- $2,500 depending on the sales price and state.

This deposit money will be placed into a separate escrow account by the closing agent and applied. Appraisal and home inspection fees will also be paid in advance – these costs are generally $700 for the appraisal and $550 for the home inspection. Home inspections are not always required, but always a good idea.

Depending on the seller’s concessions you negotiate, or the appraisal value, you can often receive the advance money you paid (deposit on contract, appraisal fee, home inspection fee) back at closing!

If you have questions about this topic or the proper way to structure your purchase contract, please connect with us by calling or just submit the Quick Contact Form found on this page.

How To Get Pre Approved for USDA Loan

This page updated and accurate as of July 12, 2026 USDA MTG HUB

Short video below explains how how To Get pre approved for USDA loan. The 100% USDA Rural Housing loan is great for first time home buyers that have little saving for a home purchase. This video will discuss what home buyers can expect. What paper work and documents will be needed, etc.

Applicants that have questions or what to learn more about getting pre approved can submit the Quick Contact Form on this page.

Buying versus Renting Home in 2026

This page updated and accurate as of July 12, 2026 USDA MTG HUB

Buying a home versus renting is a big decision that takes careful consideration. While there are several biased sources that can make arguments for or against owning a home, we’ve found that most home buyers base their ultimate decision on emotion. Or course there are some benefits to owning a home. Tax advantages to name one, as well as the potential to earn equity or pay a mortgage note off after several years. Buying versus renting home is a big decision, let’s discuss some of the pros and cons of each.

Benefits Of Renting:

Lower Up Front Cost:

Unless you’re able to qualify for a mortgage loan with zero down and have your closing costs paid for by the seller, a typical investment to purchase a home is around 3.5% – 7% of the purchase price for down payment and closing costs on an FHA home loan The amount goes up to an average of 10% – 20% for a home secured by a traditional conventional mortgage.

Some mortgage programs today like USDA Rural Housing still allow home buyers to move into a home with no down payment and very little money out of pocket. However, the USDA loan has certain eligibility criteria that must be met. Compared to the cost of about 1-3 month’s rent payments, it’s obvious that renting a home makes financial sense in the short-term.

Low Qualifying Standards:

While the Government loans like FHA, VA and USDA have more flexible credit qualifying guidelines than most traditional home loans, there is certainly a lot less paperwork and personally invasive probing required by most landlords and property management companies. Generally proof of job & income, credit history and a deposit is all that is needed to rent a home. You can find a rental home or apartment and move in same day in most cases.

Freedom To Move Around:

It’s easy to find a home through a reputable property management company, move in that weekend and then leave a year later when the rental contract expires. Not being tied down by a long-term mortgage liability is ideal for people new to a community, in a career that keeps them on the go or for parents with children that prefer a certain school district. Plus, if you’re planning on moving in the next 3-5 years, then it may become cost-prohibitive due to the amount of equity you’ll have to gain in the short-run just to cover the cost of paying an agent, buyer closing costs, transfer taxes so that you can at least break even at closing.

Less Maintenance and Cost:

If something breaks like a water heater, AC unit or appliance – simply call to the property manager and they will generally solve the issue in a few days. Plus, renters don’t have to carry expensive homeowners insurance, pay property taxes or worry about interest rates adjusting.

Home Ownership Benefits:

Freedom To Change Things:

Don’t like the color of the walls? Change it they way you like! And depending on whether or not there is an home owners association, you could probably do the same thing on the home’s exterior. Landscaping, flooring, built-in shelving… it’s your property to renovate and make your own.

No Restrictions For Pets:

Well, according to the rules and regulations of your county or neighborhood HOA, you can pretty much have as many domestic and exotic pets without having permission or paying extra deposits. It may seem like a funny benefit to mention first, but the millions of dog and cat lovers would definitely rank this towards the top of their list.

Security:

The only way you would be forced to move is if the bank forecloses on your property due to a default on the owners mortgage.

By owning your own home, you don’t have to worry about a landlord’s financial ability to make mortgage payments on time. Plus, you can stay in your own property as long as you wish.

Tax Deductions –

The US government has created certain tax incentives making it possible for many homeowners to exceed the standard yearly deduction.

The following three components of your home mortgage may be tax deductible: Interest on your home mortgage – Property Taxes – Origination / Discount Points paid to mortgage company.

Stability:

Remaining in one neighborhood for several years lets you and your family establish lasting friendships, as well as offers your children the benefit of educational continuity.

Appreciation of Property:

Historically, even with other periods of declining value, home prices have exceeded consumer inflation. Over the last 40 years, home prices increased on average 6.5%, according to the National Association of Realtors. Most experts agree, over the long run a home is good investment.

Increased Net Worth:

Few things have a greater impact on net worth than owning a home. In a comparison of renters versus homeowners, the Federal Reserve Board of Consumer Finance found that the average net worth of renters was just $4,000 compared to homeowners at $185,000.

While the available tax advantages and potential for earned equity are generally highlighted by most industry professionals as the top reasons to own real estate, it’s important to remember that markets go through cycles. However, owning real estate that appreciates more than the rate of inflation may help contribute towards your overall investment portfolio, provided your maintenance and mortgage costs are kept low.

Talk to us today about the latest first time buyer programs designed for renters. Questions? Please call Ph: 800-743-7556 or submit the Quick Contact form on this page.

Alabama Rural Housing Loans

This page updated and accurate as of July 12, 2026 USDA MTG HUB

Alabama Rural Housing loans offer a way for first-time home buyers to purchase a home with no down payment. The truth is home buyers just don’t have a lot of options to purchase a home with zero down payment. In fact VA and USDA are the only government loan options in 2016 that allow Alabama buyers to purchase a home with $0 cash down.

The USDA home loan program offers many advantages that you won’t find in an FHA loan or traditional “conventional” mortgage program. A few of these advantages include low monthly mortgage insurance, 100% financing, and no asset or reserve requirement.

That’s right, the USDA loan is one of the only remaining mortgage programs in the country that require absolutely no down payment for the purchase of a home. In addition, the USDA home loan program allows for closing costs to be either paid by the seller in full or permitted to be accumulated or “rolled into” the total amount of the loan if the home appraisal is high enough. This allows buyers to need very little money upfront to buy your home.

The USDA 502 Guaranteed loan is available to all home buyers purchasing in eligible locations throughout Alabama. The program is not reserved exclusively for first-time home buyers. Even better, buyers are not required to take any special class to get approved. Complete a loan application and search for a home all on the same day!

In order to qualify for a USDA Rural home loan, applicants must meet the basic lender USDA loan eligibility requirements below.

The property must be located in an area that is designated as “rural” by the USDA. Many popular locations across Alabama still qualify
The program is available for purchase transactions only (no investment properties or vacation home purchases)
Available for 1^st Time Buyers or Repeat Buyers (Buyer cannot own another home at the time of purchase)
620 credit score is required to obtain approval
Buyer income is limited to a maximum of 115% of the area’s median income. Contact us below to discuss the USDA income limits in your county.
The entire purchase price (including the upfront USDA Guarantee Fee) can be financed (100% financing, no down payment required)
The seller or lender can contribute up to 6% of the sales price toward the home buyer’s USDA closing costs
Single-family homes only (no manufactured housing)
Secure 30-year fixed loan term
W2 income or self-employed is allowed (income and employment must be fully documented)
Gifts for closing costs or down payment (if desired) are permitted

USDA Mortgage Hub serves home buyers across Alabama 7 days a week. Borrowers that have questions or what to learn more about getting pre-approved can submit the Quick Contact Form on the right side. Mobile phone users can find the Quick Contact form at the top of their page. You can also call ph: 800-743-7556

Anniston, Birmingham, Montgomery, Mobile, Huntsville, Tuscaloosa, Hoover, Dothan, Decatur, Auburn, Madison, Florence, Gadsden, Vestavia Hills, Phoenix City, Alabaster, Bessemer, Opelika, Enterprise, Homewood, Northport, Prichard, Athens, Daphne, Pelham, Oxford, Albertville, Selma, Mountain Brook, Trussville, Troy, Tillmans Corner, Center Point, Helena, Hueytown, Talladega, Fairhope, Ozark, Scottsboro, Cullman, Foley,

Lakeland Polk County USDA Home Loan

This page updated and accurate as of July 12, 2026 USDA MTG HUB

The Lakeland USDA home loan has become a great resource for many first-time home buyers in recent years. USDA Rural mortgages offer several benefits, keeping in mind the limited savings most first-time buyers have. The USDA 502 Guaranteed program allows buyers to purchase with $0 money down – in fact, this is the only 100% home loan available in Polk County unless you are a home buyer with VA loan eligibility.

We listed a breakdown of the USDA program. Please contact us at ph: 800-743-7556 with questions.

100% financing – The Federal government backs USDA loans, and allows 100% financing as a way to help develop and expand rural locations in Polk County. The USDA mortgage also allows for the seller of the home to pay the buyer’s closing costs, up to 6%. With that home buyers can generally close on a home with little to NO money out of pocket.
Loan qualifying is simple – Getting qualified and approved for a USDA loan is quick and easy. Often times the entire pre-approval process can be completed in 20 minutes. There is no special requirements like first-time buyers class, grants, or special education that are needed to apply. Buyers just need to ensure they have decent credit scores (over 620) and income below the max limit set for Polk County. Contact us to discuss USDA income limits in more detail.
Approved Locations – The USDA 502 Guaranteed program is only for certain rural locations in Polk County. The good news is most of Polk County just outside of Lakeland and Winter Haven is still approved for USDA financing.
Secure interest rate– One of the benefits of the USDA loan is the fixed 30-year interest rate. Compared to other traditional loans where the interest rates can vary or adjust, the interest rate remains the same for the entire course of the loan. No pre-payment penalty or adjustable rate (ARM) terms. Home buyers can sell their home or refinance anytime without restriction.
No savings requirement – Home buyers are not required to have a certain about of saving to be approved. Most conventional loans require large down payments and savings reserves for buyers to get approved, but not the USDA program. Buyers can also receive gift funds if they choose to put money down or help pay USDA closing cost expenses.

USDA mortgage applicants need to know what to expect before starting the approval process. Knowing what to expect will always help your chances of successfully getting your USDA loan approved. Below we have listed some things to consider :

Credit score
Borrowers will need a credit score of 620 or better, however, a 620 credit score does not automatically guarantee loan acceptance. For buyers that have experienced a recent bankruptcy or foreclosure (financial hardship), you would need to have maintained perfect credit for (3-4 years) regardless of your current credit score.

It’s usually little things that can hurt your credit. If you think your credit needs some work, check it out in advance before you make an application. Keep in mind, your interest rate is tied to your credit score. Buyers with the highest credit scores generally receive the lowest interest rate. This is important because it can save buyers thousands over the life of their loan.

Employment and debt/income ratio
A solid review of buyer’s debt must be done by lenders to insure the buyer can meet the obligation. Banks and lenders don’t want to see a total debt load that’s higher than 42 percent for a USDA mortgage approval. Buyers will also need two years of consistent employment with unexplained gaps in job history. Changing employers within two years in the same line of work is perfectly ok.

USDA Rural Development Loan Process:

A full application will have to be filled out that detail everything about you which will be used in figuring out whether you’re eligible for the USDA loan. The rate and the terms of the loan will also be determined largely by the information in your application and credit score. The complete USDA application process takes about 20 minutes to complete. In the event the application is pre-approved, and you go under contract to purchase a home, you will get the disclosure documents which are essentially mortgage disclosures that have all the fine details regarding the terms, interest rates, cost and payments of the loan.
The mortgage disclosures are to be signed and returned along with other documents such as your bank statements, driver’s license, and employment pay stubs, for verification purposes. Normally these documents are prepped and readied well before the loan application is submitted to the lender or bank.
The mortgage company processor will review and verify all documents and requests for missing or any additional documents from the borrower if need be. Upon completion, the documents are then submitted to the underwriter for review.
The underwriter will send a loan conditions list detailing any additional information or documents needed from the applicant.
Once the applicant satisfies the needed items on the list, the file is sent back to the mortgage company for final approval. After this the closing is set up with the title agent, buyer and seller. The USDA closing time in Florida is approximately 35 days from start to closing.

Learn more about USDA loans by calling ph: 800-743-7556 or just submit the Quick Contact form at the top of this page. Proud to serve home buyers across the U.S. including Lakeland FL, Auburndale, Bartow, Davenport, Dundee, Eagle Lake, Fedhaven, Fort Meade, Frostproof, Haines City, Highland Park, Lake Alfred, Lake Hamilton, Lake Wales, Lakeland, Mulberry, Polk City, Providence and Winter Haven

Tennessee USDA Loan Details

This page updated and accurate as of July 12, 2026 USDA MTG HUB

The Tennessee USDA home loan program is intended to provide moderate-income homeowners with 100 percent financing – no down payment. United States Department of Agriculture loans, also known as Rural Housing or Rural Development, are available to approved buyers in almost every county in TN. This government-backed mortgage program offers some great perks, especially for first-time home buyers. Let’s look at the Tennessee USDA loan details below.

Tennessee USDA Loan Details:

There are a variety of requirements to qualify for Tennessee USDA Loans:

Monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (34% ratio)
100% financing, the home seller is also allowed to pay home buyers closing costs.
Credit background will be fairly considered. At least a 620 FICO credit score is required to obtain USDA approval through most lenders and banks.
Tennessee home buyers must have enough income to pay their housing costs plus all additional monthly debt (41% ratio with some flexibility depending on credit, etc).
Income can be up to 115% of the median income for the area.
Past financial hardships like Bankruptcy: Have been discharged from a Chapter 7 bankruptcy for three years or more (if applicable).
Tennessee property must be considered rural, which is generally defined as locations with rural characteristics. Most single family homes are eligible as long as they are located in an USDA approved zone. USDA 502 Guaranteed loans can be made on either new or existing homes. Contact us by calling ph: 800-743-7556 to learn about the approved locations in your area, you may be surprised. Existing homes must be structurally sound, functionally adequate, and in good repair; There are no restrictions on the size or design of the home financed. Additionally, the property must not be used for “income-producing” purposes. Mobile homes are not permitted.

Additional USDA Benefits:

There are no set USDA mortgage loan limits, however your debt ratio generally needs to be within program guidelines, which combined with the income limits would effectively put a cap on the loan amount you qualify for.
USDA mortgages do require a little monthly mortgage insurance, but it is much lower than FHA and Conventional mortgage options.
You are not required to be a first-time home buyer.
Flexible refinance options available to USDA homeowners should interest rates decrease later.

TN home buyers that have questions or what to learn more about getting pre-approved can submit the Quick Contact Form on this page. You can also call ph: 800-743-7556 USDA Mortgage Hub is one of the nation’s leading Rural Housing loan specialists, we are available to serve you 7 days a week.

Servicing all TN: Memphis, Nashville, Knoxville, Chattanooga, Clarksville, Murfreesboro, Jackson, Franklin, Johnson City, Bartlett, Maryville, Bristol, Lebanon, Mount Juliet, East Ridge, Farragut, Shelbyville, Tullahoma, Dyersburg, Dyersburg, Springfield, Goodlettsville, Greeneville, Sevierville, Dickson, Elizabethton, Middle Valley, McMinnville, Athens, Soddy-Daisy, Lakeland, Hendersonville, Kingsport, Collierville, Cleveland, Smyrna, Germantown, Brentwood, Columbia, La Vergne, Gallatin, Cookeville, Oak Ridge, Morristown, Spring Hill.

First Time Buyer Process

This page updated and accurate as of July 12, 2026 USDA MTG HUB

Purchasing a home is an important investment that generally pays off big returns in the long run. Most experts agree that buying a house is a great way to build wealth in the future. Although real estate markets go up and down, over the long run they tend to increase. Additionally, in many markets, it’s cheaper to own than rent.

The first step to purchasing a home is financing – First-time home buyers need to know how to get pre-approved, and what that requires. How much can you afford? Or better yet, how much do you want to pay each month for a house payment? Is your credit scores good enough? How much money will you need to put down? What loan program? 100% USDA Rural Housing, FHA, VA, or Conventional mortgages? All questions that need to be answered before the home shopping begins.

Many housing markets provide good opportunities for first-time home buyers right now. This is mainly due to the availability of quality homes on the market and the current low-interest rate environment which allows you to afford a larger home than say just a few short years ago.

To get pre-approved for a home loan, you’ll need to speak with a loan specialist who will walk you through the complete first time buyer process:

Initial Interview – expectations and goals. Financing requirements
Complete a loan application
Review your loan qualifying options

Initial Loan Application Interview:

First time home buyers need a quality loan officer, someone who knows how to communicate the pre-approval process well and can answer your questions with ease. The loan advisor will want to know how much you feel comfortable paying each month and often times that amount is similar to what you’re currently paying in rent each month. The loan officer will talk about your goals such as how long you intend to own your first home or if there is a particular section of town or school district in which you’d like to live. What down payment amount can you afford? etc.

Complete Mortgage Application:

After the initial review, you’ll be asked to complete a loan application so the loan advisor can get a firm idea of your present situation such as how long you’ve been at your job, your gross monthly income as well as the all-important credit report. Once you apply, your loan advisor will review your application and credit report and prepare some options for you to consider.

Discuss Your Options:

As a first time home buyer, you’ll likely be surprised at how much home you can actually afford given today’s affordability index. The affordability index is a combination of housing prices, current interest rates and gross monthly income. The loan advisor will review your mortgage options for you to include not just how much you can afford but also how much you’ll need to provide as a down payment (if any) plus closing costs and related inspection fees.

Finally, your loan specialist will provide you with your letter of Pre Approval, a formal letter that indicates to a seller that you are serious about buying your first home, you have applied for a mortgage and your credit report has been reviewed. This will also indicate your approved loan amount, loan program and other terms.

Any U.S. home buyers that have questions about applying for a 100% USDA mortgage can learn more by submitting the Quick Contact form on this page.

Maryland USDA Home Mortgage

This page updated and accurate as of July 12, 2026 USDA MTG HUB

Maryland first-time buyers can still obtain a home loan with $0 money down thanks to the USDA Rural Housing mortgage. The Maryland USDA home loan program, also known as the Maryland Rural Development Loan program, is a 100% government-insured mortgage that allows home buyers to purchase a home in a rural defined location with no money down.

The USDA loan allows for 100% financing, and reasonable credit guidelines, and even allow for all closing costs to be paid by the seller or financed into the overall amount of the loan under certain conditions. Maryland USDA home loans offer some of the lowest mortgage rates out of any other home loan program in the country, come with flexible 30-year fixed rate terms, and are specifically designed for moderate-income buyers.

Maryland USDA Property Loan Eligibility Requirements:

To be eligible for a Maryland USDA home mortgage, the property you’re looking to purchase must be located in a USDA-eligible rural area. USDA-eligible rural areas include any open rural area, places with a population under 10,000 residents, as well as some areas with populations between 10,000 – 25,000 as long as they are located outside of major Metropolitan areas. There are still many USDA-eligible properties that are located in small suburban communities not too far outside of major Maryland cities such as Baltimore.

USDA eligible housing must be modest in size, design and cost and must meet all standard HUD requirements like other loan programs such as FHA and VA. Home buyers that have questions about the eligible locations can contact us now by submitting the Quick Contact form on the left side.

Types of USDA Loans Available

There are currently two kinds of USDA rural home loans available to qualified Maryland single-family residents. These are USDA Guaranteed Rural Home loans and USDA Direct Rural Home loans.

USDA Direct Rural Home Loans

USDA Direct rural home loans are less common than USDA Guaranteed home loans and are only available for low to very low-income households. For a household to be eligible for a USDA Direct home loan they must have an overall household income that is either below or in between 50-80% of the area median income. USDA Direct home loans are financed directly by the USDA and usually come with a 30 year fixed rate terms.

USDA 502 Guaranteed Rural Home Loans

USDA Guaranteed rural home loans are the most common type of USDA loans and allows for higher income limits and 100% financing for home purchases. To be eligible for a USDA Guaranteed home loan applicants may have an income of up to 115% of the median household income for that particular area. All area income limits can be viewed here on the website. All USDA Guaranteed home loans come with flexible 30-year fixed rate term, this program is only offered through approved USDA lenders.

USDA offers many great benefits for home buyers just starting out, listed below are some of the program highlights:

Secure fixed interest rate– One of the great advantages of the USDA loan is the fixed 30 year interest rate. Compared to other traditional loans where the interest rates can vary, the interest rate remains the same for the entire course of the loan. No pre payment penalty or adjustable rate (ARM) terms. This is good because the home owners can plan out their fixed monthly expenses.
No Money Down – The Federal government insures or backs USDA loans, and allows 100% financing as a way to help develop and expand rural locations in Maryland. The USDA mortgage also allows for the seller of the home to pay the buyers closing costs, up to 6%. With that home buyers can generally close on a home with little to NO money out of pocket.
Loan qualifying is simple – Getting qualified and approved for a USDA loan in Maryland is quick and easy. Often times the entire pre approval process can be done in minutes. There are no special requirements like first-time buyers class or education that is needed to apply. Buyers just need to insure they have reasonable credit (over 620) and income below the max limit set for Maryland. Contact us to discuss income limits in more detail.
Buyers aren’t required to have a lot of savings – Applicants don’t need any savings to be approved. Most conventional loans require large down payments and savings reserves for buyers to get approved, but not the USDA program. Buyers can also receive gift funds if they choose to put money down.
The USDA program can be used by any home buyer – Not exclusively for first time home buyers, the USDA loan can be used by move up buyers as well. No special class or down payment assistance needed.
No Loan Limits – USDA does not have purchase loan limits like other programs.

Maryland USDA home loan applicants need to know what to expect before starting the approval process. Knowing what to expect will always help your chances in successfully getting your USDA loan approved. Below we have listed some things to consider :

USDA Debt-to-income ratio:
A solid review of the buyers debt must be done by lenders to insure the buyer can meet the obligation. Banks and lenders don’t want to see a total debt load that’s higher than 42 percent for a USDA mortgage approval. Buyers will also need two years of consistent employment with large gaps in employment.

USDA Credit check:
It’s usually the pesky small things that can hurt your credit. If you think your credit needs some work, check it out in advance before you make an application. Keep in mind, your interest rate is tied to your credit score. Buyers with the highest credit scores (720 +) generally receive the lowest interest rate which can save thousands over the long term.

USDA Credit score:
As of 2016, a credit score of 620 or better is needed for the 100% Rural Development loan. If you came out of bankruptcy or foreclosure, or other financial hardship you would need to have maintained perfect credit for (3-4 years) regardless of your current credit score. Remember, a 620 credit score do not guarantee loan acceptance.

USDA Loan Application and Closing Process:

A full application will have to be filled out that detail everything about you which will be used in figuring out whether you’re eligible for the USDA loan. The rate and the terms of the loan will also be determined largely by the information in your application and credit score. The complete USDA application process takes about 20 minutes to complete. In the event the application is pre-approved, and you get an approved purchase contract, you will get the disclosure documents which are essentially mortgage disclosures that have all the fine details regarding the terms, interest rates, cost and payments of the loan.
The mortgage disclosures are to be signed and returned along with other documents such as your bank statements, driver’s license, income pay stubs, etc., for verification purposes. Usually, these documents are prepped and readied well before the loan application is submitted to the lender.
The mortgage company processor will review and verify all documents and requests for missing or any additional documents from the borrower if need be. Upon completion, the documents are then submitted to the underwriter for approval.
The underwriter will send a loan conditions list detailing any additional information or documents needed from the buyer.
Once the buyer completes the needed items on the list, the file is sent back to the lender, bank or loan broker for final approval. After this the closing date is set up with the title agent, buyer and seller. The USDA closing turn time in Maryland is approximately 35 days from start to finish.

USDA Mortgage Hub is the nations leading resource on 100% Rural Housing loans. Call us today at ph: 800-743-7556 to learn more.

Serving Maryland – including Baltimore, Columbia, Germantown, Silver Spring, Waldorf, Ellicott City, Glen Burnie, Frederick, Dundalk, Rockville, Gaithersburg, Bethesda, Towson, Bowie, Aspen Hill, Wheaton, Bel Air South, Potomac, Severn, North Bethesda, Catonsville, Hagerstown, Woodlawn, Essex, Annapolis, Severna Park, Odenton, Clinton, Chillum, Olney, Randallstown, Montgomery Village, Owings Mills, Owings Mills, Pikesville, Eldersburg, Bel Air North, College Park, Salisbury, Parkville, Milford Mill, Crofton, Perry Hall, Carney, Reisterstown

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