What is the USDA Guaranteed Home Loan Program?
The USDA Guarantee loan is a 100% financied mortgage for moderate-to-low income homebuyers in eligible rural and suburban areas. As with FHA and VA, the USDA does not make loans.
Instead, they are made by USDA approved lenders and insured by the USDA.
- 30-year and 15-year fixed rates are available
- The property must be owner-occupied
- Home must be in an eligible location.
- Borrower must be qualified as low-to-moderate income for the area.
Property must be owner-occupied.
Benefits of the USDA Program
- Zero-down with 100% financing is one of the greatest benefits.
- USDA loans are the only type of loan that allows buyers to roll their closing costs into the mortgage.
This means you are able to finance more than 100% of the sales price.
- The seller can pay up to 6% of the closing costs for the buyer.
- Mortgage Insurance is required but the premiums are lower than those of FHA loans. See comparison chart.