USDA Home Loans SimplifiedWatch the Video
USDA home loans offer incredible benefits to borrowers looking to buy homes in rural areas. If you live in a small town or rural area approved by USDA Rural Development, you may be able to purchase a home with as low as 0% for a down payment.
The U.S. Department of Agriculture was created in the 1930s during the New Deal.
The USDA rural housing program was created in the early 20th century because many homes didn’t have indoor plumbing, electricity, or good standard living conditions.
The U.S. Housing Act of 1949 declared every American deserves a “decent home and a suitable living environment.” Today, the USDA rural housing program has helped hundreds of thousands of families achieve their dreams of home ownership.
- FICO credit score of 580 or higher
- 0% down payment
- Only available to eligible zip codes and areas
for USDA loans
The USDA Loan Guarantee is meant for low-to-moderate income families and has income limits based on all household income and family size. Income limits differ by region. To check maximum income limits in your area, talk with your local On Q Mortgage Consultant.
Is my property eligible for a USDA loan?
In order to qualify for the USDA loan, your property must be in an eligible area. Most larger cities and metropolitan area homes are not eligible for USDA loans.
Call an On Q Mortgage Consultant to find out if your home is in a USDA eligible area.
USDA loan vs Conventional Loan
There are plenty of differences between USDA loans and Conventional loans beginning with the down payment amount. USDA loans usually require little to no down payment where Conventional loans may require anywhere from 3% to 20% down. USDA loans are more readily available to low to moderate income borrowers who live in rural areas where Conventional loans are often used for higher income borrowers in all areas. Take a look at the chart below for more common differences in various loan types.
What are the benefits
to a USDA loan?
A USDA mortgage loan is a great option for a first or repeat home buyer that may have a lower income and/or a limited amount of money to put down. Some of the benefits include:
- 0% down payment
- 30 year fixed rate mortgages
- Purchase and refinance options for existing USDA Loans
- And much more!
Contact an On Q Mortgage Consultant today to see if a USDA home loan is right for you!
USDA Loan Limits
USDA Home loan limits can vary based on the area. They will reflect the market in the surrounding area, which can be higher in real estate markets like California and Hawaii and lower in parts of rural America.
for USDA Loans
This mortgage program allows FICO scores as low as 580. If you are unsure of your FICO score, give us a call.
Contact an On Q Mortgage Consultant near you today to see if a USDA home loan is right for you!
Mortgage Insurance for USDA Loans
All USDA loans require mortgage insurance. The first premium charged is an upfront one-time payment mortgage insurance premium that is financed into the loan amount and usually totals around 1 % of the loan. The second is an annual mortgage insurance premium, which is .35% of the loan amount divided by 12. The MIP is divided into 12 installments and are part of your monthly mortgage payments. Check out our Loan Calculator for the monthly breakdown of your mortgage.
USDA Loans for First Time Home Buyers
USDA loans can be a great solution for First Time Home Buyers with lower incomes and could offer 0% down in rural areas. On Q Financial offers our On Time Closing Guarantee, Simplicity mobile app with our Mortgages Simplified technology, On Time Closing Guarantee, Multicultural Advantage, and more to help qualifying home buyers achieve their dreams of home ownership. Talk to your local On Q Financial Mortgage Consultant to get started.
USDA Loans for Realtor Clients
On Q Financial works with you and your clients to find the best loan programs to match their needs and ensure that we’ll close on time.
We offer products and services to make sure your clients have the simplest mortgage experience with our Simplicity mobile app, On Time Closing Guarantee, Multicultural Advantage, quality service, and more.
Use our free mortgage payment calculator to see your potential monthly mortgage payments
Buying a home is a big investment. It’s important to understand everything involved and see how much you can afford.Go to Calculator