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Quick Facts About USDA Rural Development Loans

This page updated and accurate as of October 6, 2026

USDA Loan FactsBelow we have listed some quick facts and benefits of USDA Rural loans.

  • 100% Financing – NO down payment.  Approved buyers can borrow up to 102% with financing USDA Funding Fee.
  • No First-Time Home Buyer Requirement – You don’t have to be a first-time homebuyer to benefit from this program.  Under certain circumstances, you can even own another home!
  • USDA Rural Development has TWO different loans.  Rural Development loans are broken down into two different loan types:  USDA Guaranteed Rural Housing (502 Guaranteed) Loans and USDA Direct Loans.  USDA Guaranteed loans are originated through local Lenders, Banks and Brokers. This program is generally geared towards moderate-income borrowers. The USDA Direct Loan is originated directly through the USDA office.
  • Increased Income Limits – Based upon the number of people in the household:  1 to 4 = $122,800. Read more about the USDA income limits.
  • Approved Locations For USDA Loans – USDA loans can be used in many locations, even in more populated states like California, Florida, Georgia, and Texas. Learn more about where USDA loans can be used.
  • NO Monthly Mortgage Insurance –  Compared to FHA mortgages, mortgage payments on USDA loans are less because of the lack of mortgage insurance.
  • Seller Contributions For Closing Costs – Most lenders and bank limit to 6% of the purchase price, which is often more than enough to cover the buyers closing costs.
  • Flexible Credit and Qualifying Guidelines– A 620 credit score is preferred.  However, lower credit scores from 600 are possible with good compensating factors.
  • Finance Closing Costs– Borrower’s closing costs/pre-paid items can be financed into the loan as long as there is room between the purchase price and the appraised value.  No other loan program allows for this.
  • Appraisal Requirements– The appraisal requirements for RD loans are similar to standard conventional loans.
  • Finance Required Repairs– Any lender-required repairs can be financed into the loan, up to 10% of the purchase price.  150% of the repair amount is required.  Of the 150%, 50% has to be from the borrower or the seller for any cost over-runs.  Work has to be from licensed professionals.  Upon completion, any money left over is returned.
  • NO Loan Limit– Unlike FHA or Down Payment Assistance programs, GRH loans have no maximum sales price limitation.  The maximum sales price allowed is determined specifically by the buyer debt to income and financial situation.

Want to learn more? Just submit the Quick Contact Form on this page.

 

FHA Loan Prequalify Michigan Home Buyers

This page updated and accurate as of October 6, 2026

FHA still remains a popular mortgage program for Michigan home buyers.  Low 3.5% down payment, secure fix interest rates, and quick closings are just a few benefits the program offers.  You might be wondering exactly how you go about get prequalified for an FHA mortgage?

First, it’s important to understand exactly what a “prequalification” actually is in FHA mortgage terms.  An FHA prequalification means that under the information provided to your loan specialist, you generally meet the guidelines that are set for FHA loans.

At this stage, none of the information you provided is documented or verified.  You may or may not have made a formal FHA application, you just want to know whether or not you can obtain an FHA loan in Michigan and if so, approximately how much can you borrow.

To prequalify for an FHA loan, you will first speak with a loan advisor either on the phone, online or face to face.  The mortgage specialist will ask you a few general questions to get an idea about your current situation, your goals, your income and the amount of funds you will have when it comes time to close on your new Michigan home.

The loan officer will ask for your:

Household Gross Monthly Income

This is the amount of total household income from all borrowers that will be on the FHA loan.  If you will be the only person on the loan, then only your income will be used.  And remember, this is the monthly gross income, the income before any withholdings are deducted.

Employment

Along with how much you make each month, your FHA loan officer will want to know the nature of your job, what you do there and how long you’ve been at your current employer.  FHA loans ask for approximately two years of current, full-time employment unless you are a recent college grad. If you have part-time income in addition to your regular job, be prepared to provide two years’ worth of part-time income from that job as well.

Savings

Your FHA loan officer will also pre-qualify you based upon the amount of funds needed to close on an FHA loan plus allow for additional closing costs that may be associated with the new FHA loan.  This amount doesn’t necessarily mean how much money you have in your bank accounts today, but how much you will plan on having when it comes time to close on your new home.

To prequalify for an FHA loan here in Michigan, all it takes is a little time and answering a few questions.  Once you have determined that you’re ready to make the move and apply for an FHA loan, your loan officer will then begin the documentation process that will complete the FHA loan approval process.  This will include actual copies of your tax returns, W2’s, bank statements, etc.  To learn more, please call us above with questions, or just submit the Quick Call Form on this page.

Home buyers should also keep in mind many locations in MI are still eligible for the 100% USDA loan. Home buyers can compare USDA and FHA loans here.

Latest Texas FHA 203K Guide

This page updated and accurate as of October 6, 2026

FHA loans remain one of the most popular mortgage financing options in Texas. The FHA 203K version is basically the same as a regular FHA loan, with one key difference – this program allows for renovation costs to be included in the homebuyer loan. Let’s take a detailed look at latest Texas FHA 203K guide and everything home buyers will need to know.

FHA 203k, also known as the home repair or renovation loan, is one of the most diverse home improvement loans out there. Buyers can use this loan for needed repairs, upgrades, remodels and building of a new structure on a house you own or will own. The 203(k) for great simple upgrades like kitchen remodeling, bathroom or completely reconstruct a home that is in need of repair. You can borrow up to 96.5% of the post-renovation appraised value. This is great for first time home buyers in Dallas, Austin, San Antonio, etc.

The limited FHA203k is for renovations under $35,000.  Also available is the standard 203k for larger renovations over $35,000. Both programs require 3.5% down payment, and home buyers must meet all the basic FHA qualifying requirements in regards to credit and so forth.

Eligible Repairs:

The Streamline 203k program is most commonly used for simple cosmetic repairs not exceeding $35,000 and includes WDO repairs, roof, gutters, etc.  It may also be used for HVAC systems, electrical, plumbing, minor improvements to kitchens, bedrooms or bathrooms, flooring, painting as well as new energy efficient window upgrades and door weather stripping and insulation.  The 203k light rehab loan encourages funds for energy efficient additions, removing lead paint, and the addition of decks, patios, porches, septic and well system.  A borrower may also use the funds to purchase a washer or dryer, or new kitchen appliances.

Ineligible Repairs:

Items not eligible for the 203k Streamline light rehab loan are landscaping and yard work and major remodeling or rehabilitation to any dwelling.  It is also not for moving walls, additions or fixing major structural damage to the house.  The full 203K loan allows in-depth repairs over 35K.

FHA 203(k) Terms:

The loan terms are standard 30 or 15-year fix. With the 203k light rehab loan, no minimum loan balance is required; however, buyers must intend to occupy the property as their primary residence once the repairs are complete. This is not a loan for investors that want to fix/flip a property.  The property may not be vacant for more than 30 days and all work must be completed within six months.  You do not have to hire a HUD-approved contractor; however, a licensed professional must complete all eligible repairs.  All repairs must begin within 30 days after the closing.

Who Does the Work?

The 203k mortgage allows the buyer to select their licensed contractor and the lender will review the contractor’s credentials and experience.  The lender will get a firm estimate from the chosen contractor and generally add 10% to the repair costs. Buyers can even arrange to complete some of the work themselves as long as they document showing that you are qualified to complete the said repairs.

FHA 203K Q&A:

What is the maximum FHA 203k loan amount?

FHA 203k loans are available in amounts from 275K-630K + depending on your state and county.  You can visit the HUD website and look up your county loan limit.

Is there a required down payment?

Yes, just like the standard FHA loan a minimum of 3.5% is required.

 What types of repairs are allowed with a Streamlined version 203(k)?

  • Patio or porch additions
  • HVAC repairs
  • Home improvements for accessibility for disabled
  • Finishing a basement
  • Installing a new roof.
  • Window replacement
  • Siding replacement
  • Exterior painting
  • Energy Savings upgrades

What types of repairs are permitted with a FULL 203(k)?

  • Structural alterations and additions to the house. New home additions must be attached to the existing structure.
  • Kitchen or bath remodel
  • Minor foundation issues
  • Repairs that have a total cost of $35k or more
  • Modernization and improvements to the home’s function
  • Elimination of health and safety hazards.

Want to learn more? Buyers nationwide can contact us 7 days a week by calling the number above.

How To Apply For USDA Rural Loan Pennsylvania

This page updated and accurate as of October 6, 2026

The USDA home loan is a mortgage program that is supported by the US government’s agriculture department. USDA stands for United States Department of Agriculture. The loan program provides prospective borrowers with an opportunity for homeownership, without any down payment. If fact, USDA remains one of the last 100% home loan available today in Pennsylvania.

Below we will discuss the steps and how to apply for a USDA rural housing mortgage:

Pre-Qualification:

The first step in the application process for a USDA rural housing mortgage loan is pre-qualification. This is done on the basis of information to evaluate whether the applicant is eligible to apply for the loan. The objective of pre-qualification is determined by the following:

  • To determine the eligibility of the applicant based on his or her income and several other factors. Keep in mind USDA loans have household income limits.
  • To calculate the total amount of loan needed.
  • To determine if the location of the property is USDA eligible.  USDA Rural housing is available only for approved locations in PA.
  • A detailed explanation of the USDA program and how to apply.

Citizenship Status:

All applicants are asked about their citizenship status. If the applicant happens to be a qualified alien, he or she would be required to furnish the lender with all the necessary documentation establishing his legal immigrant status.

Credit History:

The borrower is informed by the loan originator about the credit history standards maintained by the lenders and banks, generally a min 620 credit score for USDA loans.  During the approval process, the lender will review the applicant’s credit history including current debts and payment history.

Home Occupancy: 

The loan originator will ask the applicant if the home will be a primary residence. Keep in mind, most of the government loan programs like USDA, VA, FHA require the home to be owner occupied. These programs are not to be used for investment properties or vacations homes.

Employment History:

Regularly employed applicants should have a solid 2-year employment history with no extended unexplained breaks. Switching jobs (one employer to the next) within 2 years is acceptable. Self-employed borrowers should have a fully 2 years of tax returns.

Home Buyers Finances:

In this step the loan originator makes a detailed enquiry on the applicant’s expenses, income and debt so that they can determine the applicant’s income potential and his ability to repay the loan. Applicants will want to ensure they have their most (2) recent employment pay stubs and last (2) years of W2’s and tax returns.  The applicants previous (2) months of bank/savings statements will also be needed.

Applicants that want to learn more are encouraged to contact us above 7 days week.  Proud to serve buyers nationwide including Pennsylvania, Philadelphia, Pittsburgh, Harrisburg, Altoona, York, State College, Wilkes-Barre, Norristown, Chester, Bethel Park, Williamsport, Allentown, Erie, Reading, Scranton, Bethlehem, Lancaster, Levittown,  Monroeville, Drexel Hill, Plum, Easton, Lebanon, Hazleton

 

Louisiana 100% USDA Rural Loans

This page updated and accurate as of October 6, 2026

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.

USDA Rural Housing Loan Background

This page updated and accurate as of October 6, 2026

It might sound a bit funny that the United States Department of Agriculture oversees a home loan program but it does, but why? The USDA loan does have a long history and has been referred to by other names over the years but today it’s one of the least utilized home loan programs in today’s market when it really shouldn’t be. The USDA origins can be traced back to 1946. Then, the Farmers Home Administration, or FMHA, was established to replace the Farm Security Administration. In 1990, the Rural Development Administration was formed under the auspices of the United States Department of Agriculture. The RDA’s mission is to provide assistance to those in rural areas with business loans, grants, and community development programs. It is here where the USDA home loan is administered.

The USDA loan program is one of three government-backed mortgage loans that provide some level of compensation to a lender should the loan go into default. The other two loans in this category are the VA and FHA programs. With the USDA loan, the lender is compensated to 100% of the loss due to default. There is no down payment requirement for this special program as well making it easier for those who live in rural areas to buy and finance a home.

The USDA home loan guarantee is funded through what is known as the Guarantee Fee, which is 1.00% of the purchase price of the home and is sometimes referred to as the “upfront” fee because it is settled at the closing table and rolled into the loan amount. It is not paid out of pocket. There is an additional fee charged once per year called, appropriately, the Annual Fee. This amount today is 0.35% of the outstanding loan balance and is paid in monthly installments along with the principal and interest payment, taxes and insurance. These two premiums are paid for by the borrower with the lender as the beneficiary and apply to USDA loans used for both a purchase as well as for a refinance.

Many homebuyers aren’t aware of this program and instead resort to a conventional loan. However, conventional mortgages will require a down payment (generally 10% down) causing the borrowers to come to the closing table with more money. There are lenders who tend to specialize in the USDA program and heavily promote it as their more rural markets. What exactly is rural according to the USDA?

The USDA has already declared certain regions as rural and makes adjustments to these zones once every 10 years after the most recent census has been completed. To find out if an area is in an approved zone the loan officer will visit the USDA website and type in the property address. If the property is in an approved zone the USDA will accept the property. If not, the buyers must find a property that is located in an approved area or otherwise find another loan program.

Because the adjustments to these areas take place once per decade areas can be included in an approved area that look nothing like rural property. For example, as property values increase the closer you are to urban areas, buyers seek to finance a home further out for a better deal. Developers recognize these trends and develop new subdivisions which soon readily populate an area. Schools and shopping can soon follow. Yet a property can still be in an approved USDA zone even though there houses all around.

In such an instance, a property can be in an approved zone today due to the age of the most recent census but next year is out of an approved zone due to the newly designated areas defined by the USDA. You won’t find approved areas in urban locations but you might very well be surprised to discover the area you want to buy is sitting in an approved USDA zone.  Quesitons?  To learn more please call ph: 800-743-7556 or just submit the Quick Contact Form on this page.