USDA Loans for Rural or Agricultural Homes
The USDA loan may be one of the least known government assistance programs. The loan is issued through the USDA loan program by the United States Department of Agriculture, also known as the USDA Rural Development Guaranteed Housing Loan Program. The program is designed improve the economy and quality of life in rural America. The loan offers low interest rates and 0% down payment options to encourage low to middle income households to purchase homes in outlying non-metro areas.
Key Points About USDA Loans
- Check with your Rainbow Mortgage Inc. representative to see if your income qualifies for USDA as there is a maximum household income threshold for USDA loans and it varies by county.
- USDA offers a Zero Down-Payment option.
- The home must be in a USDA Eligible Zone. Check with your Rainbow Mortgage Inc. representative to see if you are in a USDA zone.
- There is mortgage insurance on the loan- upfront and monthly. Call your Rainbow Mortgage Inc. representative to discuss what mortgage insurance is and why you are required to have it.
- USDA has very strict debt to income limits.
- USDA offers refinances if there is a current USDA loan, however, the government only allocates so much money for USDA refinancing and the money may not be available.
If you are considering purchasing a home outside of the Twin Cities, Duluth, and Rochester metro areas, give us a call so we can determine if you qualify for a USDA loan and if your home is eligible. We would love to help you with our no cost initial consultation to determine the best options for you and your family.
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Apply now with our easy online form and find out how much you qualify for!