A USDA Rural Development Loan is a type of home loan offered by the United States Department of Agriculture (USDA) to help individuals and families in rural and certain suburban areas purchase homes. One of the most attractive features of USDA loans is that they typically require no down payment. This can make homeownership more accessible for individuals who may not have substantial savings for a down payment. Despite common misconception these loans aren't just for farmers, anyone that meets the credit, income, and location guidelines can get one.
One of the most significant benefits of a USDA loan is that eligible borrowers can purchase a home with no down payment and sometimes even finance closing costs for a loan with truly no money down. USDA refinances are also available for up to 100% of your home's value.
The property being financed with a USDA loan must meet certain requirements, including being located in an eligible rural or suburban area, meeting minimum property standards, and being the borrower's primary residence. What areas qualify under USDA may surprise you! Many eligible areas aren't what most people would consider rural, we can help you determine where to look.
USDA sounds similar to FHA loans, what are the differences and why choose USDA? These two loan types are similar in that they are both insured by the government against default, though by different departments. Lenders assume less risk due to the government backing of the loans so borrowers are able to get lower interest rates and lower downpayments when compared to conventional loans. These loans also offer an opportunity to borrowers who may not qualify for a conventional loan to access a mortgage loan and homeownership. The biggest difference is the downpayment requirement of 3.5% on FHA loans versus no downpayment on USDA loans.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 224179
www.nmlsconsumeraccess.org
Phone: (340) 778-4444
matt@schaffermortgage.com
2A Solitude
Christiansted, VI 00820
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