USDA Lending

US Department of Agriculture Loans

Here in Central Indiana we have several counties in the outlying areas of the metropolitan that have land that is considered an untapped resource by the housing administration. In an effort to further develop these areas there are USDA loans that are backed by The US Department of Agriculture. These loan programs offer zero down to buyers looking to purchase a homestead in specific designated rural areas. USDA loans are mortgages backed the U.S. Department of Agriculture as part of its USDA Rural Development. Guaranteed Housing Loan program. USDA loans are available to home buyers at 100% financing with reduced mortgage insurance premiums, and possibly feature below-market mortgage rates.

USDA mortgage insurance rates are lower than those for comparable FHA loans or conventional ones. USDA upfront mortgage insurance is not paid as cash. It’s added to your loan balance. There are often still closing cost involved and as your buyer’s agent we will help to negotiate seller’s assistance to help pay those fees. As of October 1, 2016 the USDA has lowered it’s mortgage insurance cost not for just the upfront costs but, also for the monthly. USDA loans are great loans if the you and the property qualify. Rural loans can be used by first-time buyers and repeat home buyers alike. Homeowner counseling is not required to use the USDA program. So if you or your family are considering USDA mortgage be sure in understanding all of your options. This option could be the perfect lending option in getting you into your dream home. There are, however, some special requirements to obtaining a USDA loan. Click here to find out if an address is eligible for a USDA loan. USDA loans require that there be a minimum credit score of 580 but in order to be streamlined 620 or higher is preferable. Often lenders want to see a dependable source of steady income over a 24 month period of time. Just as with an FHA loan there must be an appraisal done to confirm the property is worth the amount being asked to be financed by the lender. A good lender will look at all loan options for what best fits your individual needs and provide you with their recommendation. We deal with USDA mortgages on a regular basis and would be happy to answer any questions you may have regarding this type of loan program.