USDA Loans

Looking for a property with no money down or flexible down payment options in a rural community? You may be able to qualify for a USDA Loan.

Frequently Asked Questions

Does USDA finance the property?

A USDA Guaranteed Loan is a government-backed loan where the USDA guarantees the loan when you work with an approved lender. Contact Premier Plus Lending more for details about USDA loan programs.

Can I choose any rural area to qualify for a USDA loan?

The primary residence must be located in an eligible rural area. Contact Premier Plus Lending to determine if the desired subject property falls into an USDA eligible area.

Can I get a USDA loan for a second home or rental property?

USDA loans are for homeowners who will use the property as their primary residence. You can purchase a condo, manufactured home, single family residence, or planned unit development (PUD) with a USDA loan as long as it is located in a USDA eligible area.

Is there a maximum loan amount limit?

There is no maximum loan amount, but the amount you can borrow depends on the value of the home, your monthly income, and your debt to income ratio. In most cases, the maximum loan amount is 100% of the appraised value of the home.

How much is mortgage insurance?

Your mortgage insurance premium is less than what you would pay for a conventional loan or FHA loan. It’s comprised of an upfront guaranteed fee of 1% of your loan amount and an annual fee 0.35% of your loan amount.

How much do I have to bring to closing?

Closing costs vary by loan and borrower, but the seller might agree to pay closing costs. If the home appraises for higher than the purchase price, closing costs can be financed into the loan as long as the total loan amount doesn’t exceed the appraised value. In these cases, you won’t have to put any money down at closing.

How can I increase my chances of getting approved for a USDA loan?

Borrowers must meet certain income guidelines to qualify for their loan. While the USDA loan program is designed for low-income families, you still need to qualify with the right debt ratio. Household income requirements range between 50 to 115% of the average income for the area, depending on the loan program.

How do I get approved for a USDA loan?

To speak with an experienced mortgage advisor, contact Premier Plus Lending to get the loan application process started.

rural area in california with potential to qualify for usda loan

If you’re planning on buying a property in a rural community, you may be able to qualify for a program through the Rural Housing Service (RHS), an agency of the U.S. Department of Agriculture (USDA) with no-money down financing. Flexible downpayment funding options are one of the main benefits USDA loans offer, making home ownership affordable for many rural residents.

 

When you may want to consider a USDA Loan

  • If you have limited funds for downpayment and closing costs and you’re a first-time homebuyer or borrower
  • If you’re a buyer with a low-to moderate-income

USDA Loan Features

    • There’s no downpayment requirement, favorable loan terms and no prepayment penalties
    • Qualified borrowers may be able to finance up to 100% of the purchase price with no downpayment required on certain Premier Plus Lending loan products.
    • USDA loans are available as fixed-rate loans so the payments are consistent and stay the same throughout the lifetime of the loan.
    • You have the ability to make bigger monthly payments to pay down the balance sooner, or pay off the loan in full without incurring any fees or penalties.

Contact Us To Discuss Your Loan Options, Today!

We’re looking forward to helping you find the best loan options for your specific needs