A Great Solution
USDA No Money Down Mortgage Loans
It may sound too good to be true, but it’s a legitimate mortgage program that over a million home buyers have used since 1949. The USDA loan is a government-sponsored loan that exists to help develop rural communities by encouraging homeownership. That’s why this loan type is also known as the rural development loan.
With flexible requirements, USDA loans feature:
- 100% financing + required guarantee fee = 102% of the appraised value
- Competitive interest rates
- Reduced monthly mortgage insurance
- Gift funds can be used for closing costs
- 30-year, fixed-rate mortgage
USDA loan eligibility is based on the property size, location and condition along with income and other qualifying factors. Some of these requirements include:
- Property must be located in a USDA designated rural area
- Maximum loan limits vary based on location
- Household members can have a total income of up to 115% of the medial income for the area
- Household must be able to afford the mortgage payment, including property taxes, homeowners insurance and the annual guarantee fee payable on a monthly basis
In addition, USDA loans allow you to take out a bigger loan than the purchase price if the appraiser says the home is worth more than you’re paying. For example, a home is for sale for $200,000 but the appraiser says it’s worth $205,000. You can take a loan out for the whole $205,000 and have five thousand dollars with which to cover closing costs. USDA is the only loan type that allows this strategy.
USDA loans are a great opportunity to break into homeownership with little upfront costs, and fairly low monthly costs, considering the low interest rates available for this program.
Applying online is as easy as 1-2-3. You can apply in as little as 20 minutes.
- Complete the application.
- Once done, your information will be reviewed for instant online approval.
- A Loan Specialist will follow up to answer your questions.
Our goal is to provide the highest level of service at competitive rates. Our Loan Specialists are only a phone call away if you need help. Contact us at 802.442.8121 or Toll Free at 800.216.1103