USDA Home Loan
Apply Online
Check Your Eligibility
Get PreQualified Today!

When we talk, we can discuss the finer points of USDA home loan program:

• Just HOW LOW your particular interest rate will be
• Typical things to look out for when you are searching for a home
• Things we can do to increase your likelihood of approval

What our clients have to say about us

Call now and start your path towards financial freedom!

What follows is a complete guide about USDA home loans, benefits, eligibility, requirements, turn times. Last Updated – Jan 2024
Estimated read time 8-10 minutes.

Learn Everything You Need To Know About USDA Home Loan Program

What Is A USDA Loan?

In 1991 the United States Department of Agriculture (USDA) started offering loans for the development of rural and suburban areas. USDA loans are no money down home loan programs that a lot of home buyers do not realize that they can qualify for. USDA is one of the bigger programs that is insured by United States Government along with FHA and VA.

Apply Now! | Top Of The Page | Back To Index

Benefits Of A USDA Loan

Two main benefits that first time home buyers enjoy with USDA are:

• No Money Down Payment: This is the only program available for non veterans that allows for a zero-down-payment option.
• USDA Rates are fantastic : Since USDA is insured by the government, you get really great rates on USDA loans compared to a conventional mortgage.

Apply Now! | Top Of The Page | Back To Index

What Does USDA Say About Their Program?

This program assists approved lenders with providing low and moderate income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve, or relocate a dwelling in an eligible rural area. The program provides a 90% loan guarantee to USDA-approved lenders in order to reduce the risk of its debt extending a 100% loans to eligible rural home buyers.^[1]

All this means is that you will need to fulfill some requirements, the property you are planning to buy must also meet USDA guidelines.

Lets break this into simple steps!

Apply Now! | Top Of The Page | Back To Index

USDA Property Requirements:

• Rural Property : Instantly you might be thinking that you don’t live in a rural area. There actually are a lot more properties than you can think that fall in an USDA eligible area around you. If you really need 0% down you might have to extend your commute by 5 to 10 minutes to be in a USDA eligible area.^{[2] [3]}
• Property Condition : USDA wants that property to be in good condition, they do not like rehab. You might be able to find a way to do a rehab loan with USDA but they’re just complicated and you might be better off with something like FHA 203K type instead.
• Primary Residence : The property must be your primary residence. USDA is not going to allow investment properties, you need to live in the home to qualify.
• Zero Income Producing : Means being in a rural area, the property itself should not have any sort of actively working farm on it. If you need to finance a property that has a working farm on it or has income-producing buildings or land then you need a farm loan as USDA loan will not be approved for such property.

Apply Now! | Top Of The Page | Back To Index

USDA Income Requirements:

• Stable Income/Employment : Steady or increasing income is helpful. If there is a gap of 30 days of unemployment that’s where you need to write a letter of explanation and we can guide you through what that looks like and how to navigate that normally.
• Income Limits By County : USDA has set limits which change depending your state and county. USDA will calculate household income for everyone 18+ in the home even if they are not on the loan. If combined income goes above the income limit, you will not qualify for the loan.^{[4] [5]}

Apply Now! | Top Of The Page | Back To Index

Features of a USDA Loan:

• Flexible credit guidelines : You can qualify with credit scores as low as 640, if your credit is less than that try to improve and get past that number as USDA might not approve your loan.
• Low interest rates : Low mortgage Rates that have a maximum cap determined by USDA.
• 30 year fixed rates : Fixed mortgage terms insures stability with mortgage payments.
• Government guaranteed : Helps in getting qualified for 0 down
• Low Mortgage Insurance : USDA has 0.35% mortgage insurance compared to 0.85% for FHA loan.
• Ability to roll in your closing costs : Closing costs which can be anywhere from 0 – 6% can be rolled in your loan amount.

Apply Now! | Top Of The Page | Back To Index

Qualification for USDA Program:

• US citizen or permanent residency
• Credit score of at least 640
• 12 months of no late payments
• Household-income less than 115% of the area median income
• Should be primary residence
• Property should be located in a qualified rural area

Apply Now! | Top Of The Page | Back To Index

Comparison USDA Home Loan vs FHA Mortgage

Here are some key comparison points between USDA and FHA loans.

Comparison Basis	FHA	USDA
Down Payment	3.5%	0 Down
Upfront MIP	1.75%	1.00%
Annual MIP	0.85%	0.35%
Property Location	Anywhere	Rural Area
Credit Score	580	640
Income Limits	No	Yes

For comparison between all popular loan programs refer this document

Apply Now! | Top Of The Page | Back To Index

Approval Turn Times For A USDA Loan

Turn times differ from state to state and can take anywhere from a day to couple weeks.

Just like any other type of loan, USDA loans have to go through the underwriting process in the end lender will submit that loan to USDA. USDA has to do a final approval and audit of that loan in turn times it can take anywhere from one day to maybe a week. During this stage USDA gives no insight to how long your loan is going to take before it is approved.

Here are turn times for select US states:

State	Turn Times
Florida	10-12 Days
Indiana	3-5 Days
Kentucky	10-12 Days
Ohio	5-7 Days

As long as the lender is doing everything correctly, you are going to get an approval. We have never had a rejection from USDA, once in a while it can take longer than expected to get approved. With USDA you do not get progress updates or call and check on your files status.

Apply Now! | Top Of The Page | Back To Index

USDA Approved Lenders

Here is a list of approved lenders for USDA program in select states. This is not the complete list of participating lenders. For a more comprehensive list please check USDA website here.

Lender Name			State
Mortgage Lending Investment Trust Corp			Florida
Beach Community Mortgage Services, Inc			Florida
First Equity Mortgage Bankers, Inc			Florida
Community Heights Funding Inc.			Ohio
Midwest Mortgage Investments, LTD			Ohio
First Ohio Home Finance, Inc			Ohio
Home Mortgage Assured Corporation			Ohio
First Equity Mortgage, Inc.			Kentucky
Community Heights Funding Inc.			Florida

Apply Now! | Top Of The Page | Back To Index

Current USDA Home Loan Rates

As mortgage rates at all time low levels of sub 3%. Talk to our USDA loan expert to find out your eligibility and have a word about today’s rates!

Share with Family and Friends