Loan Types USDA
U.S. Department of Agriculture (USDA) mortgage loans are offered in rural areas to help borrowers who meet certain income guidelines gain access to home loans at low mortgage rates. USDA rates are typically lower than non-USDA mortgage rates.
Property types eligible for USDA loans include single-family homes, condominiums and manufactured housing on a permanent foundation. Eligibility requirements vary depending on property location, and these loans are offered only to individuals whose income is within rural-development county limits based on the number of members in the household.
Important benefits of USDA mortgages include:
- No money down, and up to 103.5% financing
- Available for purchase and no-cash-out refinances of primary residences
- Gifts and/or grants are allowed for closing costs
- Borrower's closing costs may be paid by the seller or financed into the loan amount
For more information about USDA mortgage loans, talk to one of our mortgage professionals.