USDA – RD RHS Loan Programs

USDARural Development Home Loans

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Benefits of aUSDA RD LOAN

  • 100% Financing ZERO Down Payment, Credit Score down to 600
  • Low monthly PMI Insurance added to payment
  • Mortgage Interest Rates are low and affordable
  • Fixed Rate with no prepayment penalty
  • Mortgage Interest can be Tax Deductible, ask your CPA or Tax Planner for details
  • It’s more attractive than most other loan] programs due to 100% financing and low PMI
  • Sellers can pay up to 6% of borrower closing cost
Brautiful blue victorian house

What are USDA loan requirements?

Here are the requirements:

  1. 100% financing so Down Payment is ZERO
  2. Low monthly PMI or Mortgage Insurance, .35% is the factor which is low, there is a upfront funding fee of 1% paid to the USDA
  3. Credit Score down to a 620, middle score of the three or lower of the two
  4. Housing and Debt to Income Ratio is 29/41% unless you receive a Guaranteed Underwriting System or GUS Approval which is automated, they can go as high as 45%, but the loan still has to be approved by lender’s underwriter
  5. Income must be steady and provable, two year work history is required with no gaps longer than 6 months unless you’re in school at a university
  6. Two years Tax Returns is required
  7. Two months bank statements, additional reserves may be required, large deposits have to be sourced, NSF’s must be explained
  8. Only Primary Residence, no Second Homes or Investment
  9. Borrowers must have valid identification and lawful residency i.e. Driver’s License, Social Security number, Work Visa
  10. 1-4 People in household: $103,500. 5-8+ People in household: $136,600

How does an USDA RD Loan work?

A USDA RD Loan works like most any other home loan program with a few different caveats. The USDA RD home loan program provides borrowers with an opportunity to buy with no money down, so 100% financing. Also, USDA RD Loans have low monthly PMI or Mortgage Insurance added to payment the factor is .35%. There are income and property eligibility restrictions. Some lenders will finance with a Credit Score as low as 620.

What is an USDA RD Loan?

A USDA RD home loan is mortgage program guaranteed by the United State Department of Agriculture or USDA. They are issued by USDA Approved lenders who underwrite these loans.


Why should you consider getting a rural housing loan?
Simply put, 100% financing with low monthly PMI, we’ve seen clients come to the closing with zero dollars

Is my property eligible?
Click here to check eligibility

Do USDA loans help with nonrural area of a state?
In short no, but we can always check the address in the map, if eligible then it’s a go

Do USDA loans help with nonrural area of a state?
In short no, but we can always check the address in the map, if eligible then it’s a go

There are property eligibility restrictions, program is designed to promote home ownership is
rural areas, but we can always input an address into the map to see if home is eligible or not

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