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USDA Rural Home Loans Offer No-Money-Down Mortgages In Rural Areas

Home buyers with low and moderate incomes can purchase homes in rural areas with no money down by using a USDA rural home loan.

Why a USDA rural homes loans can be so valuable for home buyers in rural areas?

USDA Expert Eric Khan
Contact us at 877-868-2503 to speak with a USDA mortgage loan expert Eric Khan now or apply for a USDA home loan.

Coming up with money for a down payment is probably the biggest obstacle to purchasing a home, especially for first-time home buyers and home buyers with low and moderate incomes. That's why a USDA rural homes loans can be so valuable for home buyers in rural areas.

USDA rural home loans are limited homes in rural areas and to home buyers with low or moderate incomes, defined as incomes within 115 percent of the area's median income. The good news is that properties in areas you might not consider as rural, like homes on the outskirts of towns, can qualify for the USDA program. Some homes are eligible even if they are not in designated rural areas. Because of that, it's best to contact Total Mortgage, a USDA rural home loan expert, to find if the property can qualify.

In addition, USDA rural home loans can be used to purchase manufactured and modular housing, build a new home, or finance repairs or renovations to homes. And you don't have to be a first-time home buyer to qualify.

Benefits of USDA Loans:

USDA rural home loans offer other beneficial features that make homeownership possible for rural low- and moderate-income home buyers. Here are how USDA loan benefits in other ways:

  • Low mortgage rates

    USDA rural home loans provide low mortgage rates and 30-year fixed-rate mortgages with affordable monthly payments for the entire term of the loan.

  • No mortgage insurance

    Credit guidelines are less stringent than those of standard mortgages, allowing home buyers with imperfect credit histories to purchase homes. In fact, the USDA does not require a minimum credit score. Also, non-traditional credit is acceptable, and streamlined credit documentation is available for qualified borrowers.

  • Lenient credit guidelines

    Closing costs can be a burden to first-time homebuyers, but you can finance closing costs by including them in the mortgage. Home buyers pay a VA funding fee upfront, but that fee can also be rolled into the total loan amount or paid by the seller.

  • No price caps

    Unlike other government mortgage programs, there are no maximum purchase price limits.

  • No requirement for reserves

    USDA rural home loans, unlike most mortgage programs, do not require borrowers to have assets in reserve after the loan closing, an important break that makes homeownership more feasible for cash-strapped first-time home buyers.

  • Closing costs can be financed

    Closing costs can an obstacle to homeownership for low-and moderate income first-time homebuyers. Fortunately, USDA rural home loans permit homeowners to include costing costs in the total mortgage amount. Home buyers pay an upfront guarantee fee equal to 3.5 percent of the loan amount, but that cost can also be rolled into the mortgage. Closing costs can come from gifts or other sources.

  • Seller contributions permitted

    The seller is allowed to contribute six percent of the purchase price to cover closing costs. Sellers can also pay the upfront guarantee fee.

Only lenders that are approved by the federal government, such as Total Mortgage, can offer USDA rural homes. Contact Total Mortgage now to see if you can qualify for USDA rural home loan with no down payment.

Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.

USDA Expert Eric Khan
Contact us at 877-868-2503 to speak with a USDA mortgage loan expert Eric Khan now or apply for a USDA home loan.

Call a Total Mortgage expert now at 877-868-2503 to find out how we can customize a mortgage loan with some of the lowest current mortgage rates for you.

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