USDA Home Loans are provided by the United States Department of Agriculture. They are a mortgage loan option that makes purchasing a home in designated rural areas more affordable to qualified buyers. These loan types are backed by the USDA, allowing lenders to offer lower interest rates and no down payment.
When considering USDA Home Loans, it’s important to note that they are intended for primary residences only, and not for investment properties or second homes. In addition, USDA loans may not be used for properties located in urban or suburban areas.
It’s also important to keep in mind that while no down payment is required, there are closing costs associated with the loan that the homebuyer will be responsible for paying.
USDA home loans offer 10, 15, 20, and 30-year term options, require a minimum of a 640 credit score, and provide 100% financing to qualified homebuyers.
USDA Home Loan Details:
- 640 minimum credit score
- No down payment required
- Income and property location restrictions
- Primary residence only
- Low-interest rates
If you are interested in applying for a USDA Home Loan or are unsure if the property you are looking at will qualify for a USDA loan, get in touch with The Mortgage Firm North Central Florida, make sure to view our loan checklist, and contact us with any further questions!