USDA Loans

A USDA Loan is a mortgage loan that is insured by the US Department of Agriculture and available to qualified individuals who are purchasing or refinancing their home loan in an area that is not considered a major metropolitan area by USDA.

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What is a USDA Loan?

A USDA Loan, also known as a USDA Rural Development Guaranteed Housing Loan program, is a government-sponsored home loan program provided by the United States Department of Agriculture (USDA) for people who want to purchase, refinance, or renovate homes in rural areas across the country. USDA Loans are designed to assist low and moderate-income families to improve living standards and stimulate economic growth and development in rural communities.

Benefits of USDA Loans

  • 100% Financing - you can buy a home with no money down. In some cases 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.
  • You can use the loan to repair or add on to your home.
  • Flexible Credit Requirements.

Who is eligible for a USDA Loan?

Generally 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.

Common misconceptions of USDA Loans:

  • They are just for farmers - USDA Loans are not "just for farmers," millions of people from all walks of life already qualify.
  • FHA or Conventional Loans are better - USDA Loans often offer better terms than an FHA or conventional loans.
  • They aren't flexible - Actually, USDA Home Loans 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 for a USDA Home Loan.
  • They are only for rural areas - Actually, USDA Loans are available in many areas that most people would not consider rural. For example, many small communities just outside of metropolitan areas qualify as rural areas according to the US Department of Agriculture.
  • They are harder to get than FHA or Conventional Loans - This just isn't true. In many cases USDA Loans are actually easier to get because the loans are guaranteed by the government.

Pros & Cons

Pros

  • No required down payment
  • No prepayment penalty
  • Finance closing costs
  • Fair Credit OK
    • Most require a 640-680 FICO
    • Some lend as low as 620 FICO score
  • Low fixed interest rates

Cons

  • Restricted to rural areas
  • Max income limit
  • Mortgage insurance required
  • Single family homes only

Getting started is easy. We offer competitive rates, have great service, and local processing.

Licensing

Heartland Mortgage, Inc.
Co. NMLS# 3205
Bobbie Jo Haggard
NMLS# 92472
Licensed to do business in
Washington & Oregon

NMLS Consumer Access

Equal Housing Opportunity

Contact Bobbie Jo

Heartland Mortgage, Inc. - Bobbie Jo Haggard
30 S Palouse St
Walla Walla, WA 99362

Direct: (509) 301-1661
Office: (509) 529-3280- Ask for Bobbie Jo
Fax: (509) 522-1074
efax: (509) 267-1676

Information contained herein is deemed accurate but not guaranteed. Programs shown do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. Not an offer to extend credit or commitment to lend. Loans subject to underwriting approval.  Contact Heartland Mortgage, Inc. directly to learn more about its mortgage products and eligibility for such products.