A USDA Loan is a mortgage loan that is insured by the US Department of Agriculture and available for qualified individuals who are purchasing or refinancing their home loan in an area that is not considered a major metropolitan area by USDA.
Benefits of USDA Mortgage Loans
100% Financing - you can buy a home with no money down. You can even finance your closing costs.
You can refinance your home up to 100% of the value of your home.
Low Fixed Rate Mortgage Options.
They are usually easier to get because the Government insures the loan so that there is much less risk to the lender.
They can be used for Existing Homes, Foreclosures or New Construction.
Simple Loan Process.
No Loan Limit. No Acreage Limit.
There is No Prepayment Penalty.
Flexible Credit Requirements.
Who is eligible for a USDA-Rural Development Loan?
These loans are available to anyone who meets minimum credit guidelines and local area income requirements... and is purchasing a home or refinancing their home in an area that is not considered a major metropolitan area by USDA...virtually all of our markets have many homes that are eligible.
Some common misconceptions of USDA Loans:
Determining if a property is eligible can be difficult. Not true…our licensed Mortgage Brokers will determine if the property is eligible for USDA Guaranteed financing with the click of a mouse.
They are just for farmers - This just isn't the case. Alabama has qualifying properties in virtually every county.
FHA or Conventional Loans are better - In fact, USDA Loans often offer better terms than a FHA or Conventional loans.
USDA loans aren't flexible - Actually, they can be used to buy a new home or refinance to a lower rate.
Only certain people can qualify - Anyone who meets the income and credit guidelines can qualify. You can actually make to much money for this popular loan program.
They are harder to get than FHA or Conventional Loans - This just isn't true. In many cases they are often simpler to get because the loans are guaranteed by the government and more consumers qualify because there is no down payment requirement.
They are only for rural areas - Actually, they are available in many areas that most people would not consider rural. Most small communities outside of the big 3 cities of Alabama have properties that are eligible