Many home buyers today are not aware that USDA Rural Housing still offers 100% mortgage financing for eligible homes around the state. A USDA loan (Section 502) is a mortgage that is guaranteed by the United States Department of Agriculture. It offers very low and competitive interest rates on home loans to eligible homebuyers with no down payment requirements. The USDA Home Loan Program was made available to borrowers with excellent financing terms and flexible credit guidelines to give people an incentive to populate more rural areas. But don’t let the word “rural” fool you, most of Louisiana is still eligible for the program.
The best part is the USDA housing program is not exclusively for first time buyers, the program can be used by “move up” buyers as well. USDA housing loans have been around for years, this government-backed program offers many benefits for homebuyers that don’t have a large down payment often required by standard conventional loans.
Advantages of USDA loans for Louisiana home buyers:
- The program is one of the only mortgage financing options have does not require a down payment – still $0 down payment.
- Buyers closing costs can be paid by the home seller!
- Home buyers can purchase any eligible single family home, condo or townhome regardless of the home seller.
- USDA loans offer competitive secure fixed interest rates.
- USDA loans have mortgages have lower mortgage insurance costs when compared with FHA loans.
- USDA Rural Development loans are backed by the government and offered through approved lenders.
- Home buyers are not required to take a special “first-time buyer” class to apply. Pre-approvals can be done in minutes.
- USDA offers great refinance options for homeowners that currently have a USDA loan.
Important USDA Mortgage Requirments:
- All properties must be located in an eligible USDA zone in order to be approved for financing. Home buyers can learn about how to find USDA approved homes here. Note, the immediate populated locations like New Orleans, Baton Rouge, and Lafayette will likely not be eligible for USDA financing. However, some of the outlying communities in these cities will. With the exception of a few major cities, the state of LA is mostly eligible for the USDA financing.
- The USDA 502 program has household income limits. These income limits apply to anyone living in the home that generates income. Interested home buyers can read more about the USDA Rural Housing income limits here.
- All borrowers on the loan application should have a 620 or greater credit score to be eligible.
- Mobile homes, vacant land, large acreage, investment properties and rehab homes are not permitted. The USDA loan is primary for regular single family homes that are in decent overall condition.
Applicants can learn more or submit questions by clicking on the Quick Contact form on this page.
Serving LA – New Orleans, Baton Rouge, Shreveport, Metairie, Lafayette, Lake Charles, Kenner, Bossier City, Monroe, Alexandria, Chalmette, Houma, Marrero, New Iberia, Laplace, Prairieville, Central, Slidell, Terrytown, Ruston, Harvey, Bayou Cane, Sulphur, Hammond.