A USDA home loan is a zero-down payment mortgage for eligible rural and suburban homebuyers. These loans are issued through a private lender, such as a community bank, and guaranteed by the USDA Rural Development Guaranteed Housing Loan Program. This program is to help lenders work with low and moderate-income families living in eligible rural areas become homeowners.

Qualifications:

• Single-family homes
• Meet income and property eligibility
• Must agree to occupy the dwelling as their primary residence
• Minimum credit score for borrower must be 640+
• Front end ratio is 29/back end 41
• Must finance an upfront mortgage insurance premium (UFMIP) of 1.00% of total loan amount and pay monthly mortgage insurance (MMI) at a maximum of .35% of loan amount annually
• Not been suspended or debarred from federal program participation
• Demonstrate willingness to meet credit obligations

Requirements set by the U.S. Department of Agriculture include:

• USDA specifies that funds backed by loan guarantees must be used for:
  • New or existing residential property to be used as a permanent residence. Closing costs and reasonable/customary expenses associated with the purchase may be included in the transaction.
  • Site with new or existing dwelling
  • Refinancing of eligible loans
  • Must be an eligible property. To find out if property qualifies for this loan visit: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp

 

^{All loans subject to credit approval}