While most people think of the US Department of Agriculture as a Federal agency that works with farmers or stamps meat, there is a home loan program under the umbrella of the USDA otherwise known as Single Family Housing Guaranteed Loan Program.

The main objective of this mortgage program is to provide affordable zero down financing for moderate income families in “rural” areas or areas of low population density.

Key notes of this program:

  • There are defined income limits by household size
  • The purchase price limit is the conforming loan limit in your area
  • There is no down payment required although you may put money down if you so choose
  • You can negotiate for the Seller to pay all of your closing costs
  • There is both an upfront guaranty fee paid to USDA as well as a monthly guarantee fee which is much lower than a mortgage insurance premium would be
  • The home itself may be single family, an approved condo, townhome or new construction
  • The home and property may not be “income producing” or be deemed to have that potential which brings about a whole host of other criteria
  • No barns or significant outbuildings
  • Not in a flood zone
  • No manufactured homes
  • Not on a historic register
  • Not sub-dividable
  • 1 power meter only

If your household income meets the requirements and the home is located in an eligible area, this is one of the best mortgage programs available today!  Great 30-year fixed interest rates and it is not limited to first time homebuyers!

Give me a call today to identify whether you may qualify for this great program!

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