USDA Loans

What are USDA Loans?

In 2009, the U.S. Department of Agriculture (USDA) made changes that allowed millions of borrowers to become eligible for rural mortgage programs. Many rural home buyers who dream of purchasing a home don’t necessarily have the funds saved to make the hefty 20% down payment required by a typical home loan, so the USDA mortgage program stands alone as the only zero money down program available to borrowers that have not served in the military. These form of loans are also known as a facet of the USDA Rural Development Guaranteed Housing Loan Program.

USDA Loans used to be known as farmers loans, but these loans are not just for farmers anymore. In actuality, nearly anyone looking to purchase a home property outside of a major metropolitan area can qualify for a USDA loan.

USDA Loan Requirements

In order to be eligible for USDA loans, you must meet a certain number of requirements. First, your desired property must be located in a rural region as defined by the USDA, based on zip code and county. Your desired property must be occupied, as investment properties do not fall under eligibility for USDA loans. In addition, you must agree to personally occupy the dwelling as your primary home residence. You must fit the income requirements for the county you are interested in purchasing property in; each state county outlines a maximum income requirement. Lastly, you must not have been suspended or debarred from participation in federal programs.

How May Funds Be Used?

USDA loans do not require a down payment; you are able to finance up to 100% of the property’s value. You can use those funds to purchase a new or existing residential property to be used as your primary residence. Funds can be used for repairs and rehabilitation when associated with the purchase of an existing dwelling, or for essential household equipment. You can also you the loan to purchase and install measures that promote energy efficiency, such as solar panels. A USDA loan can be the solution to many of your home owning needs.

Contact David Jacobson For Your Home Loan Today

Because the guidelines for obtaining a USDA loan are somewhat specific, it is important to work with someone who has a good deal of experience working with USDA government financing. I have spent 25 years working in the residential real estate market in southwest Missouri. If you want the opportunity to fulfill your dream of owning your own home, I will work to make that a reality. Contact me today to get your loan process started!