What is a USDA Loan?
A USDA Guaranteed Rural Housing Loan is a 30-year mortgage with an interest rate determined by the lender. Most people think they’re just for farmers, but the program has been expanded in recent years to help families without adequate housing finance a home in rural areas.
A USDA Guaranteed Rural Housing Loan is 30 years, with an interest rate determined by the lender. No down payment is required (yeah, you read that right), which sets these loans apart from more traditional home loans.
Who is Eligible?
Applicants may have incomes up to 115% of the area’s median income and must be able to afford mortgage payments, including insurance and applicable taxes. Credit score is also considered in the application process.
Eligibility guidelines are very specific – but don’t let that stop you from chasing your homeownership goals. An experienced USDA financing professional at Evansville Teacher’s Federal Credit Union will help you navigate through the USDA loan process and determine your eligibility.
Basic qualifications include:
- The property being purchased must be in a rural area as defined by the USDA.
- The property must be owner-occupied; investment or vacation properties are not eligible for USDA loans.
- You must meet the income restrictions for the county the property is located in. Each county has a maximum income limit defined by the USDA. This maximum income limit depends on the cost of living, median income, and other economic characteristics of the county the property is located in.
What Are The Benefits of a USDA Loan?
USDA loans offer several unique benefits that differentiate them from standard home loans. USDA loans require no down payment, so qualified individuals can finance up to 100% of the home’s total purchase price.
- Better terms than an FHA or conventional loan
- Flexible credit guidelines mean less-than-perfect credit may still qualify
Learn More about the USDA Loan Application Process
An Evansville Teachers Federal Credit Union home mortgage professional will answer any question you may have, and walk you through the loan application process.Get Pre-Approved!