A USDA Loan is a mortgage loan that is insured by the United States Dept. of Agriculture. The USDA home loan program is available to qualified individuals who are purchasing (or refinancing) a home loan in an area (an area not considered a major metropolitan area by USDA).
- Perfect for First-time Home Buyers
- 100% Financing (including Closing Costs)
- No Down Payment Requirements
- No Prepayment Penalties
- Low Rates
- Existing Homes, Foreclosures, New Construction
Great for First-time Home Buyers
Benefits of USDA Loans
- 100% Financing – you can buy a home with no money down. In some cases you can even finance your closing costs.
- You can refinance your home up to 100% of its value.
- Low Fixed Rate Mortgage Options.
- They are usually easier to get because the Government insures the loan so that there is much less risk to the lender.
- Easy Loan Process. No Loan Limit. No Acreage Limit.
- There is No Prepayment Penalty.
- You can use the loan to repair or add on to your home.
- Flexible Credit Requirements.
Who is eligible for a USDA Loan?
Generally these loans are available to anyone who meets minimum credit guidelines and local area income requirements and is purchasing a home or refinancing their home in an area that is not considered a major metropolitan area by USDA.
To know more about USDA loans and whether you should apply for one, get in touch with us at Optima Lending.