The USDA loan program has become popular as other mortgage loan programs have been harder and harder to qualify for – and not just because the USDA loan program is a no-down-payment loan program. There are other USDA loan advantages (such as no mortgage insurance) that have made this a popular choice for many homeowners who are looking to buy a home.
As with any loan program, there are some basic things about the USDA loan program that if you know them and can be informed about how the program generally works, then you can lean on your loan officer at your USDA lender for the rest of the information.
USDA Loan Program Basics
- USDA loans are always a fixed rate, there are no ARM options with the USDA loan program
- You can buy any home as long as it qualifies under the USDA loan qualifying area
- Generally speaking, the USDA loan program doesn’t “like” manufactured homes
- The minimum credit score for a USDA loan is 620
- The USDA Loan income limits vary by geographic area
- If you have more than 4 people living in the home, the USDA loan income limits also grow
- A seller can contribute to closing costs with a USDA loan
As the housing market turns down and more people are looking to buy a their first home, many people are discovering that the USDA loan program is a great option. Before you speak with a loan officer, just make sure that you know these basics and then the USDA lender can help you get more information as needed.
Speak with a USDA loan officer today about whether or not this program is right for you.