100% Financing Available


There are two kinds of USDA loan and both are 100% financing, depending on your income your payment could possibly be subsidized.  Please see the guidelines for both below.

USDA Rural Development Single Family Housing Guaranteed Loan Program

Guaranteed Loans Offer Affordable Financing To Rural Homebuyers.

USDA Rural Development Single Family Housing Guaranteed Loan ProgramThe mission of USDA Rural Development’s Single Family Housing Guaranteed Loan Program is to assist low to moderate income rural homebuyers achieve their dream of homeownership!

Rural Development partners with approved local lenders to extend 100% financing opportunities to eligible rural individuals and families for the purchase of safe and sanitary dwellings. Guaranteed loans have assisted thousands of homeowners to purchase a home with affordable interest rates and loan terms.

Applicants must purchase a home within the eligible rural areas, and have a household income that does not exceed the established limits where the home is located. Additional Guaranteed Loan Features include but are not limited to:

  • 100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included.
  • Guarantee Fee applies: may be rolled into the loan amount.
  • Flexible credit guidelines. Non-traditional credit histories may be accepted.
  • Fixed 30 year interest rates apply. Lenders and applicants agree upon interest rate.
  • Qualifying ratios are 29% for housing costs and 41% for total debt. Lenders may request an exception to exceed these ratios when strong compensating factors are identified.
  • No maximum purchase price. Qualifying ratios and the applicant’s stable and dependable income will determine home affordability.
  • Eligible property types include existing homes, new construction, modular homes, Planned Unit Developments (PUD’s), eligible condominiums and new manufactured homes.
  • Eligible closing costs and lender fees may be included in the loan or paid by the applicant.
  • Gift/Grant Funds/Mortgage Credit Certificates (MCC’s)/Seller Concessions are allowed.
  • Eligible repairs and improvements may be included in the loan.
  • Applicants apply with an approved lender of their choice.

Direct Housing Loans

Purpose: Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Eligibility: Applicants for direct loans from HCFP must have very low or low incomes. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to review area income limits for this program. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically 24 percent of an applicant's income. However, payment subsidy is available to applicants to enhance repayment ability. Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories.

Terms: Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government’s cost of money. However, that interest rate is modified by payment assistance subsidy.

Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Modest housing is property that is considered modest for the area, does not have market value in excess of the applicable area loan limit, and does not have certain prohibited features. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards.

Basic Instruction: 7 CFR Part 3550 and HB-1-3550

Income guidelines-

  1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person*
                 
Very Low Income $24,400 $27,900 $31,400 $34,850 $37,650 $40,450 $43,250 $46,050
Low Income $39,050 $44,600 $50,200 $55,750 $60,200 $64,650 $69,150 $73,600
Moderate Income $44,550 $50,100 $55,700 $61,250 $65,700 $70,150 $74,650 $79,100

USDA Direct Loan Application


USDA Direct Loan allows you to purchase a home with no money down and will subsidize your payment based on your income.  We had one client buy a $180,000 home and her payment was $700.00 a month.  We also had another client who made $1400 a month and bought a $117,000 and his payment was $350.   You must have good credit but not perfect credit to qualify. 

 

There is a minimum income requirement of $1400 a month and a waiting list of 6 months to a year.

Please give us a call for further information.  For an application fill out the form below and it will automatically be sent to your email inbox. 

A valid email address is required, however your phone number is not.

USDA Home Loan Application

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