What is a USDA Loan?

USDA loans are designed to encourage rural land development and growth in rural areas. The loan program is often thought of as being just for farmers, but USDA loans have expanded in recent years to give more people looking to purchase or refinance in a rural area access to the unique benefits.

USDA Guaranteed Rural Housing Loans

LendGen is proud to offer USDA Guaranteed Rural Housing Loans. These loans are designed to help families without adequate housing finance the purchase of a home in a rural area. Applicants’ income may be up to 115% of the area’s median income. Borrowers must be able to afford their mortgage payments, including insurance and applicable taxes. Credit score is considered in the application process.

The duration of a USDA Guaranteed Rural Housing Loan is 30 years, with an interest rate determined by the lender. No down payment is required, which sets these loans apart from most conventional loans.

USDA Loan Eligibility

Program guidelines are very specific, but don’t let that stop you from achieving your homeownership goals. Our experienced USDA mortgage professionals will help you navigate through the USDA loan process and determine your eligibility.

Basic qualifications include:

• The property being purchased must be in a rural area as defined by the USDA.
• The property must be owner-occupied. Investment or vacation properties are not eligible for USDA loans.
• You must meet the income restrictions for the county the property is located in. Each county has a maximum income limit defined by the USDA. This maximum income limit depends on the cost of living, median income and other economic characteristics of the county the property is located in.

Benefits of a USDA Loan

USDA loans offer unique advantages that set them apart from standard home loans. Most notably, USDA loans require no down payment, so qualified individuals can finance up to 100% of the home’s total purchase price.

Additional USDA loan benefits include:

• 100% financing option available
• Great rates and down payment options
• Better terms than a FHA or conventional loan
• Flexible credit guidelines mean less than perfect credit may still qualify

Find out if a USDA Loan is Right for You
One of our qualified home loan professionals will be happy to walk you through the USDA loan application process and answer any questions that may arise. Get started today.

USDA Loan Property Eligibility