USDA Loan: It’s Becoming Popular
It wasn’t all that long ago when few people even know about the USDA loan program and those that did thought it had to be you owned a farm in order to qualify for a USDA loan. But not today – most homeowners who are shopping for a home outside a major city are surprised to learn that many properties qualify for a USDA loan even though they can hardly be considered “rural”.
USDA Loan Highlights
- A USDA loan is backed by the USDA
- Can be used to buy a new home or refinance an existing mortgage
- Many people can qualify – it is “not just for farmers”
Who Can Qualify for a USDA Loan?
USDA loan eligibility is determined by property, so depending on what zip code and county the property is located it may be eligible for a USDA financing. When qualifying for a USDA loan, it is very similar to qualifying for a FHA loan – it is important to have a current income that you can document, a decent credit history a demonstrated ability to repay the loan. Not all lenders have experience helping people with USDA loans, so it is important that you choose a lender with the experience and underwriting capability available in house for USDA loans.
USDA Loans: Common Questions
Still have questions about USDA loans? Here are some of the most common questions people ask us: