What is a USDA loan?
Also called a Rural Development Loan, it’s a government-insured home loan that allows you purchase a home with NO Money Down. USDA Loans offer 100% financing to qualified buyers, and allow for all closing costs to be either paid for by the seller or financed into the loan.
Who should get a USDA loan?
If your monthly housing costs meet a specified percentage of your gross monthly income (29% ratio), if you have enough income to pay your new housing costs plus all additional monthly debt (41% ratio), and at least a 620 FICO credit score.
What are the pros and cons of USDA home loans?
Pros
- Has the lowest rates and will always have a fixed interest rate
- Allows all closing costs to be either paid for by the seller or financed into the loan
- Flexible Credit Guideline
- No Maximum Loan Amount
- New and Existing Homes are Eligible
Cons
- Doesn’t allow buyers to own another “adequate” property and buy another home
- Only for buyers who don’t qualify for other financing
- Only for buyers who don’t have adequate housing
Why Trust Providential?
We’ll save you more money and will offer you low interest rates compared to the competition. If you apply for a USDA home loan, you can save cash on your home loan and closing fees.
Providential has helped tens of thousands of borrowers find the perfect home loan option for them. Apply online today!
Other Loan Options:
- 30 Year Fixed Rate Mortgage
- 15 Year Fixed Rate Mortgage
- Jumbo Mortgages
- Reverse Mortgages
- FHA Loans
- Adjustable Rate Mortgages
- VA Home Loans
- Interest-Only Home Loans
- 203K Loans
- HELOC Loans
