What Is A USDA Loan?

A USDA Loan is 100% financed with Zero Down home loan directly funded by the government. Applicant may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwelling located in rural areas.

Purpose: These loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, to purchase and prepare sites, including providing water and seweage facilities.

How Do I Qualify For A USDA Loan?

To be eligible, applicants must:

• Have adequate and dependable income
• Be a U.S. citizen, qualified alien, or be legally admitted to the US. for permamnent residence
• Have an adjusted annual household income that does not exceed the moderate income limit for the established area
• Have credit history that indicates a reasonable willingness to meet obligations as they become due

What Homes Qualify?

• Homes must be located in rural areas - Rural areas include open country and places with a population of 10,000 or less - in certain conditions: towns and cities between 10,000-25,000 residents
• Guaranteed loans can be made on either new or exisiting homes
• Existing homes must be structually soung, functionally adequate, and in good repair
• There are NO restrictions on the size or design of the home being financed

What Is Covered For Me By This Program?

• Loans may include funds for; closing costs, guarantee fee, legal fees, title services, cost of establishing an escrow account, and other pre-paid items
• Sellers may contribute to the buyer's closing costs

What Next?