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USDA Rural Development Guaranteed Home Loan

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    A United States Department of Agriculture (USDA) mortgage is likewise doesn’t require a down payment. Even applicants with a scarred credit history will usually get a USDA loan, as the credit stipulations attached to this type of loan are fairly easy to fulfill. Should you fall below the acceptable threshold, though, you may need to take on a 10% down payment.

    To be eligible for a USDA loan, the home must be in a federally recognized and approved rural or semi-rural area. On top of that, if your household income is more than 115% of the area’s median income, you may be eliminated from contention.

    USDA Home Loans have Maximum Household Income Limits which vary by the county in which you purchase a home; the income limits change annually. The Maximum Household Income Limits are based upon everyone in the home who is a wage earner, even if their income is not going to be used to qualify for the USDA Loan. For instance, Social Security Income from an elderly relative living in the home would be considered when determining the maximum household income – even if that relative was not going to apply to be on the mortgage loan. There are deductions, however, that USDA Underwriters allow, and oftentimes those calculations will pull a family under the Maximum Household Income Limit.

    Approved lenders under the Single Family Housing Guaranteed Loan program include:

    Any State housing agency; lenders approved by HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage-backed securities; the U.S. Veterans Administration as a qualified mortgagee; Fannie Mae for participation in family mortgage loans; Freddie Mac for participation in family mortgage loans; any FCS (Farm Credit System) institution with direct lending authority; any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs

    USDA’s Rural Housing Service offers a variety of programs to build or improve housing and essential community facilities in rural areas. We offer loans, grants, and loan guarantees for single- and multifamily housing, child care centers, fire and police stations, hospitals, libraries, nursing homes, schools, first responder vehicles and equipment, housing for farm laborers, and much more.

    We also provide technical assistance loans and grants in partnership with non-profit organizations, Indian tribes, state and federal government agencies, and local communities.

    We and our partners are working together to ensure that rural America continues to be a great place to live, work and raise a family.

    There are three USDA home loan programs:

    Loan guarantees: The USDA guarantees a mortgage issued by a participating local lender — similar to an FHA loan and VA-backed loans — allowing you to get low mortgage interest rates, even without a down payment. If you put little or no money down, you will have to pay a mortgage insurance premium, though.

    Direct loans: Issued by the USDA, these mortgages are for low- and very low-income applicants. Income thresholds vary by region. With subsidies, interest rates can be as low as 1%.

    Home improvement loans and grants: These loans or outright financial awards permit homeowners to repair or upgrade their homes. Packages can also combine a loan and a grant, providing up to $27,500 in assistance.

    What Are the USDA Home Loan Requirements?

    To qualify for a USDA home loan, the basic requirements are as follows:

    • The property must be located in an area that is designated as rural by the USDA (your FedHome Loan Centers Loan Officer can find out if a property is eligible)
    • The program is available for purchase transactions only (no investment properties or second homes)
    • Available for 1st Time Buyer or Repeat Buyer (Buyer cannot own another home at the time of purchase)
    • The entire purchase price (including upfront MI) can be financed (100% financing, no down payment required)
    • The minimum credit score for USDA approval is 620. The borrower must have a reasonably good credit history with limited 30-day late payments in the last 12 months.  The lender must determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.
    • Buyer income is limited to a maximum of 115% of the area’s median income (contact a FedHome Loan Centers government loan specialist for details to find the income limitations for your area)
    • W2 income or self-employed is OK (income and employment must be fully documented)
    • Gift of Closing Costs is allowed
    • The seller or lender can contribute up to 2.75% of the sales price toward closing costs
    • Single-family homes only (no manufactured housing)
    • Term: 30-year fixed-rate

    Contact Us :

    Address :- 1307 W 6th St #219, Corona, CA 92882
    Phone : (951) 963-9399
    Email : loans@happyinvestmentsinc.com

    FAQ

    What's a mortgage APR?

    Your annual percentage rate, or APR, is one of the many costs that comes with a mortgage. While your mortgage’s interest rate is the annual cost to borrow money (expressed as a percentage), your APR takes other fees and charges into account.

    Your APR includes the loan’s interest rate, any mortgage points you purchase, and lender and broker fees. Looking at your APR can give you a picture of the true cost of your mortgage.

    A mortgage’s APR is usually more than its interest rate.

    What are mortgage fees?

    Charging fees is one way that lenders make money off mortgage loans. Mortgage fees should be listed on your closing documents and may include the following:

    Origination fee
    Application/processing/administrative fee
    Underwriting fee
    Points fee
    Appraisal fee
    Inspection fee
    Attorney review fee
    Private mortgage insurance
    Homeowners insurance
    Title search or insurance fees
    Survey fee
    Prepayment penalty

    What are different types of mortgage loans?

    The most common type of mortgage loan is a conventional loan. Other types are backed by the Federal Housing Administration or are from a special program such as the Veterans Administration or the USDA.

    Most mortgages are conventional, meaning they’re not part of any specific government program — though they’re still subject to federal mortgage laws. Conventional loans typically cost less than FHA loans, but it may be harder to qualify for a conventional loan.

    The FHA regulates and insures FHA loans, and private lenders make the loans. FHA loans allow you to borrow with a lower down payment and generally with lower credit scores. But you may be limited on how much you can borrow through an FHA mortgage.

    Special home loan programs are tailored for certain groups. For example, VA loans are for veterans, military service members or surviving spouses, while USDA loans are for lower- or middle-income borrowers in rural areas.

    What documents do I need for a mortgage?

    Each lender will have its own requirements for what documents to submit when applying for a mortgage. But here’s the info you’ll generally need to provide.

    A month’s worth of paystubs
    W-2s for the past two years
    Your federal income tax return for the past two tax years
    Proof of income
    Recent bank statements
    Proof of your down payment amount, such as a savings account statement
    Documentation of a name change (if you’ve recently changed your name)
    Identification, such as a driver’s license
    Your Social Security number
    A certificate of housing counseling or home-buyer education (if you have one)

    Will mortgage rates go down?

    It depends — mortgage rates are generally influenced by the prime rate. Many banks base their prime rates on the federal funds rate, which is the rate banks charge each other for short-term loans. When the Federal Reserve changes the federal funds rate, mortgage interest rates can react and go up or down.

    But a lower (or higher) prime rate doesn’t necessarily determine the mortgage rate you’ll qualify for. Your credit scores, the type of loan you’re seeking, the price of your home and how much down payment you can afford can also affect your mortgage rate.

    Residential, Commercial, Small Business & Hard Money Loans

    If you are an investor, borrower or a broker trying to get Private Hard Money Loans let us help you by explaining all of your options, and assist you in making a fully informed decision. Happy Investments Inc overriding focus is in satisfying the diverse loan and investment needs of the customers with honesty and integrity, and we do this by consistently providing quality products tailored to their unique needs. For more information, give Happy Investments Inc a call at (951) 963-9399.

    Residential, Commercial, Small Business & Hard Money Loans

    If you are an investor, borrower or a broker trying to get Private Hard Money Loans let us help you by explaining all of your options, and assist you in making a fully informed decision. Happy Investments Inc overriding focus is in satisfying the diverse loan and investment needs of the customers with honesty and integrity, and we do this by consistently providing quality products tailored to their unique needs. For more information, give Happy Investments Inc a call at (951) 963-9399.

    Residential, Commercial, Small Business & Hard Money Loans

    If you are an investor, borrower or a broker trying to get Private Hard Money Loans let us help you by explaining all of your options, and assist you in making a fully informed decision. Happy Investments Inc overriding focus is in satisfying the diverse loan and investment needs of the customers with honesty and integrity, and we do this by consistently providing quality products tailored to their unique needs. For more information, give Happy Investments Inc a call at (951) 963-9399.

    Residential, Commercial, Small Business & Hard Money Loans

    If you are an investor, borrower or a broker trying to get Private Hard Money Loans let us help you by explaining all of your options, and assist you in making a fully informed decision. Happy Investments Inc overriding focus is in satisfying the diverse loan and investment needs of the customers with honesty and integrity, and we do this by consistently providing quality products tailored to their unique needs. For more information, give Happy Investments Inc a call at (951) 963-9399.