A USDA Loan is a government-backed mortgage designed for individuals buying or refinancing properties in rural or suburban areas. These loans offer up to 100% financing for owner-occupied residences, & up to 80% for commercial use. Meaning low or no down payment is required, and include benefits like low fixed rates, no prepayment penalties, and flexible credit requirements. USDA Loans can be used for existing homes, new construction, or even refinancing up to 100% of the home's value. They are accessible to many who meet income, credit, or community impact guidelines, with no loan or acreage limits, making them an excellent option for eligible buyers.

Key Benefits of USDA Loans:

• 100% Financing: Buy a home with no down payment, and in some cases, finance closing costs. 
• Flexible Uses: Can be utilized for owner-occupied residential use, commercial agriculture or rural community impact.  
• Commercial: Qualify for up to $25M / ~80% LTV, for agriculture or community impact businesses meeting USDA guidelines. 
• Low Fixed Rates: Enjoy predictable, affordable mortgage payments.
• Easier Qualification: With the USDA backing the loan, lenders face less risk, making approval easier.

Common Misconceptions:

• Not Just for Farmers: USDA Loans are available to anyone in qualifying rural or suburban areas, not just farmers.
• Better than FHA or Conventional Loans: USDA Loans often have better terms, including lower rates and low to no down payment. 
• Available in Many Areas: Properties in many suburban areas near major cities can qualify as rural under USDA guidelines.
• Easy to Qualify: USDA Loans can be easier to obtain due to government backing, similar to FHA or SBA loans.

Eligibility Requirements:

USDA Loans are available to those who meet specific credit, income, and location guidelines. The property must be located in a USDA-designated area, typically outside major metropolitan regions. Businesses seeking USDA financing must meet community impact guidelines to be considered.  

For more information or to see if you qualify, contact us today or fill out our online application.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.