Loan Options
A USDA loan can put you in a home with nothing down.
A USDA loan is a government backed mortgage that lets eligible buyers purchase a home with 0% down in approved areas. The program comes from the U.S. Department of Agriculture. The government does not lend the money directly. It guarantees the loan, and that guarantee lowers the risk for lenders, so they can offer better terms to the buyers who qualify.
Check If You QualifyLenditHome Powered By Alpha Home Lending, Inc.
Serving Utah, Florida, Idaho, Pennsylvania, and Texas.
Who can use the USDA program.
Despite the name, these loans are not limited to farms or agricultural property.
Built for low to moderate income households. The program exists to help families buy safe, affordable homes in eligible suburban and rural areas. Household income limits apply, and the limits vary by location.
The home has to sit in an eligible area. Many suburban and rural communities qualify. A mortgage specialist can check a specific property address for you.
It has to be your primary residence. USDA loans cover the home you live in. They can often be used for new homes, existing homes, and in some cases homes that need minor renovations.
How USDA loans work.
Local lenders handle everything from application to approval. The USDA provides the guarantee behind the loan.
0% down payment
Eligible borrowers can finance the full purchase price. No down payment is required.
Fixed and adjustable terms
Fixed rate terms include 30, 25, 20, and 15 year options. Adjustable rate mortgages are also available.
No traditional PMI
USDA loans do not carry traditional private mortgage insurance. Two modest guarantee fees support the program instead. Details are below.
No prepayment penalties
You can pay the loan down or pay it off early without a penalty.
The costs, stated plainly.
Even with these fees, USDA loans are often among the most affordable financing options available.
Upfront guarantee fee. This fee is 1% of the loan amount. It is typically financed into the loan, so it does not come out of your pocket at closing.
Annual guarantee fee. A small annual fee, paid monthly as part of your mortgage payment.
The honest trade offs. The home must be in an eligible area. Household income limits apply. And the approval process may take slightly longer than some conventional loans.
Where USDA shines. No down payment. Competitive interest rates. Flexible qualification guidelines. Mortgage insurance that costs less than many programs. And closing costs may be financed if the home appraises for more than the purchase price.
LenditHome Powered By Alpha Home Lending, Inc. is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.
See if a USDA loan could work for you.
Every buyer’s situation is different. Run a quick scenario and see what you may qualify for. Compare USDA against the other programs in just a few minutes.
Check If You QualifyPrefer to talk? Call Austin at (208) 821-0687.