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.
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
Single family, condominiums and town homes (must be agency approved)