USDA Loan News

2026 USDA Rural Development Guarantee Fee

This page updated and accurate as of February 13, 2026 USDA MTG HUB

Last year USDA Rural Housing reduced the upfront guarantee fee (also known as the funding fee) charged on USDA housing mortgages. In addition, they also lowered the monthly mortgage insurance or “annual fee” thus saving home buyers a pretty good amount!

USDA announced that the guarantee fee for 2026 will remain at the same 1% of the loan amount. The annual fee will also remain at .35% which is a pretty good amount lower than FHA’s standard 30-year premium of .55%.

Take note, if you are a buyer already pre-approved for an FHA loan, but also meet the USDA income and location restrictions, be sure to take a closer look at the USDA loan. The monthly savings is pretty significant, plus USDA still allows home buyers to finance 100% of the purchase price if they choose. Please see the USDA mortgage calculator on the right for the proper annual fee calculation.

The current USDA fees will be in place until the end of next fiscal year 2026.

USDA offers many advantages, including:

100% financing, no down payment
The seller can pay buyers closing costs and tax/insurance impounds
More generous household income limits in 2026
No loan amount limits! Applicants are qualified based on their debt-to-income
Available to all eligible homebuyers nationwide

Read more about the latest USDA loan eligibility here and by viewing the helpful video below. Questions? Please contact us 7 days a week with questions.

USDA Rural Housing Loan Income Limits 2026

This page updated and accurate as of February 13, 2026 USDA MTG HUB

USDA Rural Development recently published the newly increased income limits for the USDA Guaranteed Rural Housing loan program. The updated income limits will carry into 2026. This is great news, as even more home buyers will now be eligible for the 100% financing options that USDA loans provide.

The new USDA income limits for most locations are listed below. Check the USDA’s eligibility website to check limits for your area and calculate deductions. Note, some higher-cost locations do have higher income limits. Some important notes to keep in mind:

Remember that USDA permits certain eligible household income deductions for each minor and also documented childcare expenses, disabilities, etc.
USDA housing income limits apply to the entire household, this means any household member that is over 18 and generates income (even if they are not listed on the loan application)

New Income Limits as of 2026		Previous Income Limits
1-4 Household	5-8 Household	1-4 Household	5-8 Household
$119,850	$158,250	$112,450	$148,450

USDA 502 Guaranteed loans still offer select benefits for eligible homebuyers, let’s recap a few below:

100% Financing
Reduced mortgage insurance costs (compared to FHA and Conventional loans)
Sellers concessions are permitted for closing costs
Secure 30-year fix rate, with no early payoff or recapture penalty
Any eligible and approved homebuyer can take advantage of USDA home financing, not just first-time buyers

Questions? Please connect with us 7 days a week by calling or just submit the Quick Contact Form on this page.

Arizona USDA 502 Housing Program Guide

This page updated and accurate as of February 13, 2026 USDA MTG HUB

USDA stands for United States Department of Agriculture. In the past, many people thought of USDA as “farmer loans” mostly used to purchase homes only in country agricultural areas. That is not so much the case today with the USDA home loan.

In fact, properties in almost every area outside Arizona’s major metropolitan areas like Phoenix, Glendale, Scottsdale, etc, the USDA program can be used to purchase a home. A USDA loan provides low-cost government-insured home mortgage loans that suit a variety of options. The program is especially great for AZ first-time homeowners who have little to no cash savings for a large down payment.

Currently, there are two kinds of USDA loan programs available for single-family households:

USDA 502 Guaranteed Rural Housing Loans:

USDA 502 Guaranteed Loans are the most common type of USDA loan and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Income limits in AZ start at $119,850 + for a family of four. Most home buyers will fall under the 502 Guarantee loan, and the guarantee program is offered only through USDA-approved lenders and banks.

All USDA Guaranteed Loans carry 30-year terms and are set at a fixed rate, with no adjustable rate terms.

USDA Direct Rural Housing Loans:

USDA Direct Housing Loans are only offered directly by the USDA. These loans are less common than USDA Loan Guarantee Program loans and are only available for low and very low-income households to obtain homeownership, as defined by the USDA income eligibility requirements. Very low income is defined as below 50 percent of the area median income; low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

Arizona USDA Loan Requirements for 2026:

Currently, a min 620 credit score is required by most lenders and banks.
The home being purchased must be located in a USDA-approved area. See the map here.
Household income must be below the income limit per county – learn more about USDA income limits.
USDA permits the home seller to pay buyer closing costs – up to 6%
USDA home loans do not have a set loan amount limit. The borrower qualifies based on their debt-to-income ratios. The current debt-to-income ratio limit is 34/42. This can be exceeded in some cases with strong compensating factors like good credit, solid job history, savings, etc.

Like most loans that require less than 20% down payment, the USDA mortgage program will require an upfront guarantee fee and mortgage insurance or PMI. USDA mortgage insurance rates (PMI) are:

For purchases and refinance programs – a 1.0% upfront guarantee fee is paid at closing, based on the loan size. The guarantee fee is allowed to roll into the borrower’s loan amount. So you can finance up to 101%
For all loans, a 0.35% annual fee (PMI) is based on the remaining principal balance. This is the monthly premium added to the buyer’s payment each month – like taxes and home insurance. All USDA loans include taxes, home insurance, and mortgage insurance.

Below we listed a few interesting facts about the USDA RD home:

Arizona USDA Rural Housing loans are 30 year fixed rate mortgages
USDA loans have very competitive interest rates and no pre-payment penalties
USDA loans do not require a down payment
USDA 100% Home Loan Financing DOES have monthly mortgage insurance, but the monthly amount is much less when compared to the FHA and conventional loans.

Please read more about USDA Loan Eligibility here. Please note that household income limits will vary based on location. However, the core requirements and benefits are the same regardless of location. Please call the number above, or just submit the Quick Contact Form on this page to learn more.

97% Conventional Loan Financing

This page updated and accurate as of February 13, 2026 USDA MTG HUB

Years ago during the real estate boom, 97% Conventional loan financing was readily available for first time home buyers and the programs weren’t so exclusive. Many mortgage lenders were even offering 100% financing mortgages which worked quite well at the time. Then things started to change.

The mortgage industry experienced a downturn in foreclosures and tougher lending regulations seemed to end most of these mortgage programs. But things changing in 2026 as the housing markets continue to recover.

97% Conventional Mortgage Financing has made a recent comeback by Fannie Mae, through My Community Mortgage product and for a standard non-MCM Conventional Loan Product. These programs are meant to help first-time homebuyers who may not have the resources for a larger down payment, the program allows them to receive loans requiring little down payment. It is also great for homeowners whose homes have lost value since purchase but who are otherwise ineligible for the Home Affordable Refinance Program (HARP).

This program makes mortgages more accessible, sustainable and affordable. Fannie Mae offers guidelines and tools that enhance the benefits of 97% Conventional Mortgage Financing. The flexibilities inherent to the program are what distinguish it from other conventional mortgage financing options in the market.

97% Conventional Mortgage Highlights

The program provides a Maximum loan to value (LTV), Combined Loan to Value (CLTV), and High or Home Equity Combined Loan to Value (HCLTV) is 97%.
Manufactured homes are not eligible for 97% LTV loans.
Cash gifts may be used for down payments and reserves.
It limits the upfront monthly costs of mortgages.
It supports the long-term success of buyers.
Private Mortgage Insurance (PMI) cancels when the loan reaches 80% LTV.

97% Conventional LTV Home Buying Requirements

Only 30-year fixed rate mortgages are allowed.
Only available for low to moderate income families.
The program requires a minimum of 3% down payment.
May require homebuyer education prior to loan closings.
Borrowers are required to pay Private Mortgage Insurance (PMI).
At least one of the borrowers on the loan must be a first time home buyer.
The loan must be used for a 1 unit primary residence (including Condos and PUDs).
No second home or investment type purchases.
Applicants must score must be greater than 640 to qualify.

Other than these features, 97% conventional mortgage financing is quite similar to other conventional mortgage types. But because 97 % conventional mortgage insurance goes away at 80% LTV, it can become a better value over time, especially if you have high credit scores. The higher your credit scores, the cheaper 97% conventional mortgage funding will be. You can check your eligibility for the 97% conventional program and buy your dream home with a down payment of just 3%.

Questions about getting pre approved? Please connect with us today by calling Ph: 800-743-7556 or just fill out the Quick Contact form on this page.

Alabama Teacher Home Buying Program

This page updated and accurate as of February 13, 2026 USDA MTG HUB

Alabama Teachers have many great home financing options available that offer little to no down payment. One of the most popular Alabama teacher home buying programs remains the 100% USDA Rural home loan.

USDA Rural Housing is one of the last mortgage programs that still allow Alabama teachers to purchase homes with no down payment. USDA mortgage qualifying is easy – no down payment assistance grants needed, no special first time buyers class or long application process.

Let’s take a look at some details below and the things that teachers should know before starting the USDA pre approval process.

First, the USDA 502 Guarantee mortgage is backed by the Federal Government and offers secure 30 year fixed rate terms.

The USDA housing program is 100% financing and does not require any down payment. This is great because most Teachers are first time home buyers. Home buyers can elect to put money down if they choose to reduce their loan amount / mortgage payment. Since the program is 100% financing, no down payment assistance or special grant is needed. No schooling or “first time buyers class” needed as well. You can get pre approved this morning and write an offer on a home this afternoon.
The USDA RD mortgage also allows for the home seller to pay the home buyers closing costs. Teachers can purchase a home with little to no money out of pocket.
USDA Rural Housing is perfect for any Alabama public service workers like Teachers, Police and Firefighters that want to live in more rural locations around Alabama.

Teachers want to remember a few things before applying for the USDA housing program:

First and foremost, please read through all the USDA purchase FAQ’s here. This information in the link will help you understand all the aspect of the USDA loan. It’s everything you need to know about the USDA mortgage in one place
If you have student loan debt, all the debt will be included in the qualifying process – even if the student loans are in currently in deferment. This is important as it can have an impact of how much housing expense you qualify for.
USDA does have a two key components in regards to eligibility – where the home is located, and the income for the household. You can check the USDA housing map here, and check the USDA household income limits here. Even many popular locations in and around Birmingham, Montgomery, Mobile, Huntsville and Tuscaloosa are still eligible.

Being Prepared: The home buying process is a very important decision, so it’s not a bad idea to be prepared well in advance. Even if you are still three months or more away from purchasing, the USDA Rural Housing loan qualifying tips below should come in handy to insure you are ready when the time is right.

How is your credit?: Be sure to take a look at your credit report for any inaccuracies. Take care of any outstanding collections from the past, in many cases these creditors will settle out for a reduced amount. It’s also important to not be late on any credit accounts you have. Remember, most lenders and banks require a 620 credit score in order to get approved for financing.

Be careful with cash: Be sure you have no random cash deposits in your bank account, especially when you get within two months of your USDA loan application. If you do, be sure they are well documented – copy of check, receipt, bill of sale, etc, if available. Most cash deposits within the last few months in your account (excluding normal deposits like payroll, IRS, etc) will need to be documented.

Moving to from someplace else?: If you are a homebuyer that is relocating you will need some extra things. For employees that are relocating with the same employer (company) – you will likely need a transfer letter from your employer stating the new address and any changes in position and income. For buyers relocating and going to work for a new employer – you will likely need to be hired, working and have received one paystub before closing. Sometimes there can be exceptions to this if you have a commitment letter from the new employer, with salary, stating there are NO contingencies. Basically this will state you have passed any pre employment requirements like training, drug testing, etc

Bank Savings: Are you planning to put money down? If so, you need to plan your saving accordingly. Even if you plan on doing 100% financing USDA loan, there are still closing costs that need to be considered. All loans like USDA, FHA, etc, require closing costs in the range of 3-6% of the loan amount. The good news is these programs also permit the home seller to pay your closing costs! However, buyers still need to have a little savings to cover upfront deposit, appraisal and home inspection if needed.

How much is the cost?: It’s smart to get a “real world” understanding on what you can expect in regards to monthly housing payment based on your price point– with tax, home insurance, mortgage insurance included. Please see the USDA mortgage payment calculator on the right side of your screen.

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

Serving home buyers 7 days a week across the U.S including Alabama: Mobile, Huntsville, Tuscaloosa, Hoover, Dothan, Decatur, Auburn, Madison, Florence, Gadsden, Vestavia Hills, Phoenix City, Prattville, Alabaster Birmingham, Montgomery

2026 FHA Home Loan Benefits

This page updated and accurate as of February 13, 2026 USDA MTG HUB

The FHA loan program has remained a popular mortgage financing source for many home buyers across the nation. Many home buyers need home loan options that offer min down payment like the FHA program. In addition to the low 3.5% down payment requirement, FHA recently announced the monthly mortgage insurance is going down, making the home loan even more affordable for new buyers and current FHA mortgage holders.

In addition to a low 3.5% down payment, easy credit qualifying requirements, and backing by the federal government – FHA mortgages are an attractive option to many borrowers in the U.S. Donald Myers, FHA loan specialist, says that FHA loans will always play a big role in the housing market whether their costs rise or fall. Most buyers (especially first-time buyers) cannot qualify for bank conventional loans that require large 10% or 20% down payments.

Below we will look at all the 2026 FHA Home Loan Benefits:

Relax credit score and down payment requirements:

The FHA requirements for credit scores and down payments are far lower than for conventional loans. Borrowers can technically qualify for an FHA loan with credit scores of at least 580 credit score and a down payment of just 3.5 percent – according to FHA. While an FHA-backed mortgage with a credit FICO of 580 is “available” to borrowers, many lenders and banks will add their own in-house “overlays” on top of these minimum credit requirements.

Loans with the lowest credit scores tend to default at a much higher rate, and mortgage companies are afraid that if they issue too many loans that later fail, HUD will no longer allow them to write FHA-backed mortgages. Therefore, many borrowers will find they need to have credit scores of at least 620 to qualify for the max 96.5% financing.

FHA mortgage interest rates:

FHA loan rates are typically the lowest 30 / 15 year fixed rates available and lower than conforming loans. FHA Borrowers with credit scores of 680 will often qualify for the same interest rate as conventional borrowers with a score of 720 +. In addition, they will not be required to put as much money down.

FHA mortgage insurance premiums:

The biggest downside of FHA loans has long been the costs associated with the upfront and annual mortgage insurance premiums. However, since the interest rates on FHA loans are generally lower when compared to conventional, it oftentimes offsets the additional costs.

The upfront mortgage insurance premium (MIP) is 1.75 percent of the loan amount. That is $3,500 on a $200,000 mortgage. That cost is added to the principal balance of your loan. So your loan amount is actually $203,500.

Just to clear up any confusion, the annual mortgage insurance is actually the monthly insurance (PMI) that is added to your monthly payment. This is the monthly PMI rate, not the one-time funding fee of 1.75%. The new mortgage insurance reduction is a huge saving. On a $200,000 loan, the annual premium of 1.35 percent would cost borrowers $2,700. But with a premium of 0.85 percent, borrowers will only pay $1,700 for the same loan amount.

The lower annual rate does not apply to those applicants who are taking out 15-year fixed mortgage terms, these will remain the same. Borrowers can read all about the latest FHA mortgage insurance calculator 2026 here. Please also see the chart below – this compares the new and old FHA monthly mortgage insurance rates, the monthly saving is pretty good!

FHA closing costs:

FHA still permits home sellers to pay up to 6% of the loan amount to cover buyers’ closing costs. In conventional loans, sellers can only pay up to 3% in most cases. So this allows the FHA home buyer to put less money into the transaction. In some cases, a borrower can just pay the down payment, and have the seller pay all closing costs. Most first-time buyers can come up with enough money for a down payment, but then they have nothing else. So allowing the home seller to pay the tab on closing costs is a big help for many.

Secure backing by the U.S. government:

FHA loans are backed by the US government – Federal Housing Administration. The program offers safe secure fixed-rate terms with no pre-payment ( early payoff) penalties.

*Note, Florida home buyers have a special opportunity with the Florida Hometown Heroes Program. This state-sponsored down payment assistance program offers 5% (up to $35,000) of the home purchase price to assist with the buyer’s down payment, closing costs, and loan principle reduction.

Please call or submit the Quick Contact Form to learn more about any of the programs available.

USDA Rural Housing 2026 Fee Chart

This page updated and accurate as of February 13, 2026 USDA MTG HUB

The USDA Rural Housing 2026 fee chart is listed below. Please note, the guarantee fee and annual fee apply to both USDA purchase and refinance transactions. The new 2026 USDA guaranteed fee structure will stay in place through the year, all USDA borrowers are required to pay this.

The new upfront USDA Guarantee fee is 1.0% for all purchase and refi transactions. The annual fee (or monthly PMI) of .35% will remain the same. The upfront guarantee fee is a one-time fee that is charged by all the popular government mortgage programs. This fee can be called a Guarantee fee, Funding fee, or Mortgage insurance premium (MIP) depending on the program. The one-time costs are commonly added to the borrower’s total loan amount. The good news is USDA loans have the lowest upfront fees, nearly 50% less when compared to FHA loans

Example for calculating the upfront USDA guarantee fee:

Home buyer purchases a home for $175,000 – the buyer uses 100% financing USDA loan ( no money down)

The USDA guarantee fee added to the loan is 1.0% or $1,750

The total loan amount is $176,750

Example for calculating the upfront USDA annual fee – even though it’s called “annual fee” this is actually a monthly mortgage insurance (PMI) cost:

A home buyer purchases a home for $175,000 – 100% financing.

175,000 x.035 = $612.50 / 12 = $51.04 per month in mortgage insurance costs. This will be added to the borrower’s monthly mortgage payment, just like taxes and home insurance.

Buyers can use the USDA Loan Payment Calculator here to help calculate monthly expenses. All the latest USDA loan eligibility guide lines can be found here.

Home buyers who have questions are encouraged to contact us by calling 800-743-7556 or just submit the Quick Contact form on this page.

Arkansas USDA Rural Loan-Good for You?

This page updated and accurate as of February 13, 2026 USDA MTG HUB

Many home buyers purchasing property in one of Arkansas semi-rural communities have a great option with the 100% USDA loan. The United States Department of Agriculture & Rural Housing (USDA) still offers 100% financing through approved lenders and banks. The program requires no money down and has very competitive 30-year fix interest rates.

In addition to 100% financing, the USDA program costs less overall in regards to reduced mortgage insurance costs, over 50% when compared to the more popular FHA loan.

The USDA program has been around for many years and there have been some adjustments made over the years but the goal is still the same- to provide flexible mortgage options for those in rural or semi-rural areas. Even many locations just outside larger cities like Little Rock, Fort Smith, Fayetteville, Springdale and Jonesboro are still eligible.

Let’s discuss the basic USDA guidelines below:

Safe 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 life of the loan. No prepayment penalty or adjustable rate terms. This is good because the homeowners can plan out their fixed monthly expenses more easily.
100% financing – The Federal government insures or backs USDA loans, and allows 100% financing as a way to help develop and expand rural locations in Arkansas. 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.
Simple approval process – Getting qualified and approved for a USDA loan in AR quick and easy. Often times the entire pre-approval process can be done in minutes. There are no special requirements like classes or pre-education for first-time buyers to apply. Buyers just need to ensure they have reasonable credit and income below the max income limit for your County. Contact us to discuss below income limits in more detail.
No savings requirement – Home buyers are not required to have a certain amount of savings to be approved. Most conventional loans and FHA loans require 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.

Additional Information Home Buyers Should Know:

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 (over 680) generally receive the lowest interest rate which can save a lot of money in the long run.

Credit score
As of 2026, a credit score of 640 or better is needed for the 100% USDA loan automated GUS approval. If you came out of a bankruptcy or foreclosure, or other financial hardship you would need to have maintained a perfect credit since (3-4 years) regardless of how high your current credit score may be. Remember, a 640 credit score alone does not guarantee loan acceptance.

Debt-to-income ratio
Solid review of buyers debt must be done by lenders to ensure the buyer can meet the obligation. Mortgage companies generally don’t want to see buyers total debt load that’s higher than 42 percent for a USDA mortgage approval. Buyers will also need (2) years of consistent employment with large gaps in employment. Not required to be 2 years with the same employer, just in the same line of work.

Home buyers that have questions can contact us by submitting the Quick Contact form on this page for fast service.

Proud to serve home buyers across the U.S. including – Little Rock, Fort Smith, Fayetteville, Springdale, Jonesboro, Conway, Rogers, Pine Bluff, Bentonville, Hot Springs, Benton, Sherwood, Texarkana, Jacksonville, Russellville

100 Percent USDA Loan Texas Teachers

This page updated and accurate as of February 13, 2026 USDA MTG HUB

Most of the Teachers in Texas purchasing homes tend to be first time home buyers. Like most first time home buyers, down payment is often the main obstacle when purchasing a home. Most first time buyers just don’t have 10 or 20 percent down payment lying around for a mortgage down payment.

The good news is you still have options with USDA Rural Housing assuming you meet the basic eligibility criteria. The USDA 502 Guaranteed mortgage still allows for 100% financing in select rural defined locations around Texas. This government backed 30 year loan is perfect for teachers, police, firefighters or any other Texas public service worker that has little to no savings to purchase a home.

Please call us at Ph: 800-743-7556 anytime with questions, or just submit the quick contact form on this page.

USDA really only has two key factors to determine if you are eligible – location of the home and household income. Basically the house (single family home) must be located in a USDA approved area according to the USDA eligibility map here. Remember, USDA is not concerned about who the seller of the home is, just where the home is located as it must be a rural defined location.

It’s also a good idea not to automatically assume your location is not “rural eligible” You can easily check the property address on the map link above, some buyers are surprised to learn even certain outlying suburbs of cities like Dallas, Houston, Austin, San Antonio may still be eligible. If you need assistance finding USDA approved homes in Texas, please contact us below.

In addition to the actual location of the house, the income for the entire household must be below the USDA income limits found here.

If you find you meet the two key USDA loan eligibility factors above, everything else comes down to loan qualifying. Getting pre approved for a Rural Development loan is pretty much the same as other loan programs. Your credit score must be a min of 620 to be accepted by most banks and lenders. Your income should be documented with a stable job history as well. Since USDA doesn’t have set loan amount limits, your monthly debt to income ratios will determine the purchase price amount you qualify for.

Have questions? Contact us by calling or just submit the Quick Contact form located on this page for a fast response.

We serve home buyers across the U.S., include TX.

First Time Buyer Programs Colorado

This page updated and accurate as of February 13, 2026 USDA MTG HUB

First Time Buyer Programs Colorado: First time home buyers in CO has some great home financing options available in 2026. In the post below we talk about some of the popular mortgage programs like USDA, FHA, VA and the benefits of each.

100% USDA RD Home Loan

The complete name of the loan is the Rural Development Guaranteed Housing Loan Program, or RD for short. It is supported by the United States Department of Agriculture and offered through approved USDA lenders and banks. The program is only available on rural properties in select locations around Colorado. Don’t let the word “rural” fool you, many popular suburban locations just outside of Aurora, Castle Rock, Greeley, Fort Collins, etc are still eligible for USDA financing. You can check eligible locations and address here.

USDA Loan Benefits:

USDA is one of the only programs left that permits 100% financing – no down payment required
Great for Colorado Teachers, Fire Fighters, Police, etc. Flexibility for first time home buyers
USDA allows the home sellers to pay buyers closing costs.
Secure 30 year fix terms at low interest rates.
No restrictions on when you can move or sell your home, etc.
Buyers are not required to be first time home buyers.
No special class, down payment assistance programs needed. Applicants can be approved in minutes.
Any house that is in good repair and located in a USDA eligible location is ok, regardless of the home seller.
No loan amount limits with USDA, buyers qualify based on their debt to income.
Easy USDA refinance options available for home owners that currently have a USDA loan.

USDA Loan Requirements:

Buyers must have a min 620 credit score to be approved.
Solid work history for the past 2 years – no unexplained gaps in employment.
Household income must be below the county limit. Read more about household income limits here.
The home must be located in a USDA approved locations, see the map link above.
Mobile homes, rehab homes, land loan, lot loans, build on your own site financing NOT permitted. Home must be existing single family, approved condo or townhome in good repair.
Primary residence homes only.
Read more about USDA purchase FAQ’s here.

VA Home Loans

The VA loan program is a great benefit to active military and vets in Colorado. VA and USDA are the only two remaining 100% financing program available today. The program has been offered since 1944 and has opened up the doors to home ownership to many veterans and their families. The VA loan is one of the government loan programs that has less restrictions, and easy to qualify for.

The loan can be made without a down payment and has lower fixed interest than other types. The VA application and qualification process is similar to other types of government loans like FHA and USDA. Any interested former military must first apply for a Certificate of Eligibility through the VA, pick out the perfect house and sign a purchase agreement. Don’t have a COE, please contact us below for assistance. Once this is complete the appraisal, home inspection and underwriting process can start.

So exactly who is eligible for VA loans? Colorado vets who have served on active duty and who have been discharged, with the exception of a dishonorable discharge, can apply. A veteran, prior to applying, must have served 90 days during wartime or 181 continuous days during peacetime. Additionally, for veterans enlisted after September 7, 1980 or who began service after October 16, 1981, there’s a two-year requirement.

National guards and reservists have a six-year requirement within certain criteria. Surviving spouses have their own set of eligibility requirements. Also keep in mind VA loan benefits can be used more than once.

VA Loan Benefits:

100% financing, $0 down payment.
Lowest fixed interest rates of any mortgage program.
NO monthly mortgage insurance – or “PMI” as it’s more commonly referred to. This is a huge benefit for military buyers.
Any single family home, town home, approved condo is eligible. Must meet basic HUD standards in regards to condition. Pretty much all government loan programs follow this same protocol.
Seller can pay certain allowable closing costs on behalf of the home buyer.

VA Loan Requirements:

Must be eligible past or present military to be approved.
620 credit score required.
Loan amount limits generally follow basic conforming loan limits of $417,000
Stable employment with 2 year history.
Mobile / Manufactured homes not permitted.

Need more assistance on VA home loans? Please visit VA Mortgage Hub here.

FHA Home Loans

The FHA mortgage is a housing loan that is insured by the Federal Housing Administration (FHA) and offered through approved lenders and banks. Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.

The FHA program was created in response to the economic downturn that happened in 1930s; to provide mortgage lenders with adequate insurance; and to help stimulate the housing market by making loans accessible and affordable. Nowadays, FHA loans are very popular, especially with first-time home buyers in major metro areas like Denver, Colorado Springs, Pueblo, etc.

Typically an FHA loan is one of the easiest types of mortgage loans to qualify for in CO because it requires a low down payment and you can have less-than-perfect credit. An FHA down payment of 3.5% is required. Borrowers who cannot afford a traditional conventional down payment of 20 percent or can’t get approved for private mortgage insurance should look into whether an FHA loan is the best option for their personal scenario.

FHA Loan Benefits:

Up to 96.5% financing.
Low secure fixed rates – 15 year, 30 year, etc.
Sellers concessions permitted for closing costs.
No restrictions on home location like USDA.
No household income restrictions like USDA.
Streamline refinance options available for those home owners that currently have a FHA loan.

FHA Mortgage Requirements:

Must have a steady employment history for the past two years.
Must have a valid social security number, and have lawful residency in the U.S.
Must make a minimum down payment of 3.5 percent. The money can be gifted by a family member.
New FHA loans are only available for primary residence only.
Minimum credit score of 620 for maximum financing with a minimum down payment of 3.5 percent.
Minimum credit score of 600 for maximum LTV of 90 percent with a minimum down payment of 10 percent. FHA lenders will use a case-by-case basis to determine an applicants’ credit worthiness.
Typically you must be 4 years out of bankruptcy and have re-established good credit.
FHA does have loan amount limits depending on the County. See below.

For more detailed FHA information, please visit FHA Mortgage Source here.

USDA Mortgage Hub serves home buyers nationally 7 days a week. Please contact us with questions at ph: 800-743-7556 or just submit the Quick Contact form on this page.

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USDA Loan News

Let’s discuss the basic USDA guidelines below:

Additional Information Home Buyers Should Know:

100% USDA RD Home Loan

VA Home Loans

FHA Home Loans