USDA Home Loans
The USDA offers 100% financing for eligible borrowers and guarantees your loan for a “Guarantee Fee”, which is similar to the idea of “mortgage insurance”.
- No Down Payment
- No Need to be a First Time Homebuyer
- Guaranteed by the US Department of Agriculture
HOW IT WORKS
GUARANTEED LOANS FOR QUALIFIED APPLICANTS
A loan guaranteed by the US department of agriculture, USDA does not require a down payment and will finance 100% of the purchase price for eligible borrowers. USDA has a targeted area and they will only lend in the targeted areas. This loan program also requires that the borrower’s income be below the county median income for the family size.
MORE ABOUT USDA HOME LOANS
Loan Qualification Requirements
Must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage (18 years old in Texas).
Commonly Asked Questions
Currently, USDA requires an upfront fee of 1% (normally added to the loan amount) and an annual fee of .35% paid on a monthly basis as part of the monthly payment. For example, with a 100,000 sales price, the upfront would be ($1,000 *100K*1%). The annual would be $101,000*.35%=$353.50 annually or $29.46 monthly. The fee is based on the outstanding principal balance and would decrease as the loan balance is reduced.
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