- Type of Loan: A USDA loan is also known as a Rural Housing loan also considered a government loan. Property must be your primary residence and you have to meet certain income eligibility requirements.
- Loan Term: 15 or 30 years.
- Mortgage Insurance: The USDA reduced their ” Up Front Guarantee Fee from 2.75% to 1% in 2016 and the monthly mortgage insurance factor was reduced from .50% to .35% for the life of the loan. These fees are some of the lowest costs of any loan product available.
- Credit Score Requirements: 640 minimum for all borrowers.
- Down payment Requirements: This loan allows 100% financing with zero down payment required.
- Interest Rate: Fixed or adjustable ( Rates are better than Conventional loans)
- Additional Facts: The USDA loan is one of the most affordable home loans available. The primary purpose of the USDA mortgage is to promote home ownership in rural areas. The definition of rural is quite liberal. Many suburban neighborhoods are now eligible for USDA financing. This loan offers 100% financing with zero down payment and sellers can pay up to 6% towards buyers closing cost thereby making it possible for the purchase of a home with absolutely zero dollars out of pocket. Get a USDA rate quote for your upcoming home purchase. It takes just a minute to get started and you can get pre-approved in just hours.