USDA loans come in two primary types, each designed to meet different borrower needs:

1. USDA Guaranteed Loan: This is the most common type of USDA loan, offered by approved lenders and backed by the U.S. Department of Agriculture. It helps low-to-moderate income borrowers purchase a home in eligible rural or suburban areas.
2. USDA Direct Loan: Offered directly by the USDA for very low-income borrowers. This loan program provides more favorable terms and is designed for those who need additional assistance in qualifying for homeownership.
3. USDA Streamlined Assist Refinance: A simplified refinance option for existing USDA borrowers to lower their interest rate with minimal paperwork.

Each USDA loan type has specific eligibility criteria, so it's important to work with an approved lender, like us, to determine which loan is the best fit for your situation.

To qualify for a USDA loan, borrowers must meet income requirements, which vary by region and household size. The property must also be located in a USDA-eligible area. Additionally, borrowers need to have a stable income and a credit score that typically falls around 640 or higher. Lower scores may be allowed in certain circumstances. If you’re interested in this type of loan, we would be happy to provide more information.

USDA loans offer several benefits, including no down payment, competitive interest rates, and lower mortgage insurance costs compared to other loan types. These loans are also designed to assist low-to-moderate income borrowers, making homeownership more accessible in rural and suburban areas.

Yes, USDA loans are designed for properties in eligible rural and suburban areas. The USDA defines these areas based on population size and density, and you can check the USDA’s online eligibility map or consult with us to determine if a specific property qualifies.

USDA loans have income limits that vary based on your location and household size. Generally, your household income must be at or below 115% of the area’s median income to qualify. Check with us or use the USDA’s income eligibility tool to see if you meet the requirements for your area.

One of the major benefits of USDA loans is that they do not require a down payment, allowing qualified borrowers to finance 100% of the home’s purchase price. This makes it easier for homebuyers who may not have significant savings for a down payment.

Yes, USDA loans require two types of mortgage insurance: an upfront guarantee fee (which can be rolled into the loan) and an annual fee, which is paid monthly. These fees are generally lower than the mortgage insurance premiums required for FHA or conventional loans.

USDA loans are known for being flexible when it comes to credit requirements, making them a good option for buyers with moderate credit. We would be happy to review your situation and let you know your options.

No, USDA loans are only available for primary residences. You cannot use a USDA loan to buy a second home, vacation home, or investment property. The property must also meet USDA eligibility requirements.

Applying for a USDA loan is a straightforward process, and we’re here to guide you through each step. 

Here’s what to expect:

1. Check Eligibility: First, we’ll confirm if the property you’re interested in is located in a USDA-eligible rural area. We’ll also review your income to make sure you meet the USDA’s eligibility requirements.
2. Gather Your Documents: You’ll need to provide some basic paperwork, like proof of income, tax returns, and information about your debts. This helps us get a clear picture of your financial situation.
3. Complete the Application: Once we’ve reviewed your documents, we’ll help you fill out the USDA loan application. We’ll walk you through it, making sure everything is accurate and complete.
4. Credit Review: We’ll take a look at your credit history. The USDA doesn’t require perfect credit but having a strong credit profile can help you qualify.
5. Loan Approval: After the review, we’ll submit everything to the USDA for approval. They’ll check to ensure you meet all the guidelines, and once approved, you’re ready to move forward with your home purchase.