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The USDA Rural Development is committed to helping improve the economy and quality of life in rural America. One of the many ways is the Homeownership Programs. Well-built, affordable housing is essential to the vitality of communities in rural America. Housing Programs allow families and individuals to own safe and affordable homes located in rural America.
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USDA Home Loan
April 30, 1935
On April 30, 1935, President Franklin D. Roosevelt signed an Executive Order which established the Resettlement Administration, what we know today as USDA Rural Development. During the Great Depression, this provided aid to destitute families by helping them relocate. Since the beginning, USDA has assisted people in owning homes and offering the USDA Home Loan.
Owning a home is now well within reach for rural residents, thanks to a USDA home loan. The mission statement of the USDA home loan program is “to improve the economy and quality of life in rural America.” Created by the U.S. Department of Agriculture to assist applicants in obtaining decent, safe, and sanitary housing in eligible rural areas.
Become a Homeowner
USDA Home Loan is a popular option because they don’t require any down payment so that you can finance 100 percent of your home’s value. Plus, the U.S. Department of Agriculture guarantees these loans, making them attractive to lenders and homebuyers.
USDA Home Loans are:
- Only for first-time homebuyers
- Restricted to primarily rural areas
- For eligible homebuyers only
USDA Home Loans Sometimes referred to as “rural housing loans” because the U.S. Department of Agriculture guarantees the loans, USDA mortgage loans are perfect for first-time homebuyers. USDA loans must be used for your primary residence, not a second home. You have to meet the eligibility requirements.
Here are the main benefits:
• USDA Home Loan does not require a down payment.
• You can finance up to 100 percent of a home’s value.
• USDA Home loan is restrictive in certain areas (get details)
• You may qualify for lower mortgage insurance premiums (PMIs).
How Do You Qualify for a USDA Home Loan?
Income limits to qualify for a USDA Home Loan guarantee vary by location and depend on household size. To find the loan guarantee income limit for the county where you live, review this USDA Map.
USDA guaranteed home loans can fund only owner-occupied primary residences.
Other eligibility requirements include:
- U.S. citizenship (or permanent residency)
- A monthly payment — including principal, interest, insurance, and taxes — that’s 29% or less of your monthly income. Other monthly debt payments you make cannot exceed 41% of your income. However, the USDA will consider higher debt ratios if you have a credit score above 680.
- Dependable income, typically for a minimum of 24 months
- There is a good credit history, with no accounts converted to collections within the last 12 months, among other criteria. If you can prove that your credit was affected by circumstances that were temporary or outside of your control, including a medical emergency, you may still qualify.
- Applicants with credit scores of 640 or higher receive streamlined processing. Below that, you must meet more stringent underwriting standards. You can also be eligible with a nontraditional credit history.
Who may apply for a USDA Home Loan?
- Meet income-eligibility
- Agree to occupy the dwelling as their primary residence personally
- Be a U.S. Citizen, U.S. non-citizen national, or Qualified Alien
- Have the legal capacity to incur the loan obligation
- Have not been suspended or debarred from participation in federal programs
- Demonstrate the willingness to meet credit obligations on time
- Purchase a property that meets all program criteria
How Do You Apply for a USDA Home Loan?
At GoPrime Mortgage, Inc., we suggest you start by talking with one of our experts to learn about your options and begin the process. While you can apply online, there is comfort in knowing that you’ll have a direct point of contact for questions or concerns along the way.
Getting pre-qualified for a mortgage is a smart first step.
At GoPrime Mortgage, Inc. getting pre-qualified means running and evaluating your credit report. It also means you will be asked to supply your loan officer with proof of your finances. Being so thorough now saves you time later in the process. It also gives you peace of mind because you can rely on the amount for which you pre-qualify.
So when you are pre-qualified for a mortgage at GoPrime Mortgage, Inc., it’s worth more than a pre-qualification anywhere else. You still get a “pre-qualification letter” that tells you how much GoPrime Mortgage, Inc. is willing to loan you. The due diligence that went into that letter means you can make an offer on a home with confidence.
Pre-Approval vs. Pre-Qualification
Pre-qualification at any other lender, independent or not, often is just a rough guess at how much that institution would be willing to lend you. It guarantees nothing because pre-qualification usually is based on guesses about your income, debts, and assets. GoPrime Mortgage, Inc. asks you to substantiate that information upfront so that your pre-qualification means a lot more. They prefer to leave the guessing out of the equation.
Of course, you always have the option of completing the entire pre-approval process. It does position you as a serious, well-prepared homebuyer, which will impress many sellers and Realtors. But a pre-approval takes more time than a typical pre-qualification. Pre-approval goes through the same process and requires the same documents as actually applying for the loan, but without a specific property address identified.
Advantages of Pre-Qualification
Another advantage of getting pre-qualified for a mortgage, this helps Zachery Adam and his Team determine the best type of mortgage loan for your situation. GoPrime Mortgage, Inc. offers many different types of mortgage loans. With us, you have an ally looking out for your best interests for your mortgage.
Explore Your Options
As a first-time homebuyer, you may believe that you have to get your loan through a bank or credit union. But that’s not the case. An independent mortgage lender often provides more options than a bank can. Shop around. See who gives you the best deal on a mortgage loan that’s right for your circumstances. You may be surprised.
Getting pre-qualified for a mortgage loan is the best first step to take when you want to buy your first home.
To get a quick, down-and-dirty — and completely unofficial and nonbinding — idea of what your monthly mortgage payment would be based on the cost of a house.
Get good, professional advice for what to do and what not to do when you’re seeking to buy your first home.
When applying for a mortgage loan, you may need reams of financial records. Or not. It’s different for everyone. Here is a complete list to give you an idea.
Everyone has questions when it comes to buying a house and applying for a mortgage loan. This page answers the most common questions people have.
Law requires that you be provided with this monstrous document when you apply for a loan. Here is a helpful summary of its contents.
As you explore down the rabbit hole of mortgage loans, you inevitably will find terms and acronyms that you don’t understand. Look here for help.
While some lenders push specific mortgage loan products because it’s best for them, GoPrime Mortgage, Inc. takes the time to find the mortgage that’s best for you.
GoPrime Mortgage, Inc. offers a wide range of mortgage loan types. To understand the differences, read this page and then talk to Zachery Adam and his Team.
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Branch Manager, Loan Officer
"What we do is so far more important than lending and buying houses. We are in the business of facilitating dreams and honoring the start of a new home.”
"I enjoy working with clients new to the homebuying process. Remembering what it was like for my family, I will take my knowledge of the mortgage process and make it easier.”
"“I wake up every morning with incredible appreciation. I love what I do.” ”
Loan Officer Assistant
"My eventual goal is to become a loan officer. I love working within the community and being a part of the GoPrime Mortgage team.”