USDA Rural Housing Loan

About USDA Loans

Rebecca Foote Mortgage Team offers USDA rural housing loans, also known as rural development loans. These are loans issued by the US government to help families who may not quality for conventional loans or have the same lending options as those in larger cities. The US government issues these loans through approved private lenders like us!

With a USDA loan, the family can borrow up to 100% of the home’s appraisal, meaning no down payment is needed. The loan is set for a 30-year fixed rate home loan, and requires a small monthly mortgage insurance premium.

A USDA loan is a great option for families in smaller communities trying to find a way to buy a house.

Features of This Loan

• No down payment required
• Down payment and closing and prepaid costs may be paid funded by a gift from a relative, friend or a qualified non-profit grant
• Lower annual fee as compared to private mortgage insurance (PMI)
• May qualify for a streamlined refinance with no appraisal required and a lower guarantee fee

Consideration Points for Borrowers

• Little savings or little equity
• Less than perfect credit
• Low to moderate income (per USDA’s income thresholds)
• Currently have a USDA Loan and wish to refinance

Qualifying for a USDA Loan

To be elibible for a USDA Loan you must:

• Be a US Citizen, a US Non Citizen National or have a qualified Alien status
• Be at least 18 years of age
• Not own another house in the local area occupy the home as your primary residence
• Be unable to get conventional loan that requires a 20% down payment

There are income guidelines for USDA loans that vary by the area in which you’re applying for the loan. To learn the guidelines for your desired area, please contact us!

If you have any questions about USDA Rural Housing Loans, don’t hesitate to reach our to my team at (717) 609-4044. We are happy to answer your questions and would love to work with you!