A USDA guaranteed home loan is designed to assist low-to-moderate income homebuyers in designated rural communities. The program was created in 1991 in an effort to boost homeownership in rural areas and offer incentives to relocate.
100% financing
No loan limits
One-time 1.00% upfront Guarantee Fee, .35% monthly Guarantee Fee - if appraised value exceeds sales pricing, Guarantee Fee may be financed.
No down payment required
Up to 6% for Seller Contributions
Maximum loan amount up to 102.75% of appraised value
No monthly mortgage insurance
620 minimum FICO score
Household income considered, not just borrower on note - must meet USDA's income guidelines.
Borrowers may not own other property
Eligible properties
Single family, condominiums and town homes (must be agency approved)
