A USDA home loan is a zero-down payment mortgage for qualifying rural homebuyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture.
The U.S. Department of Agriculture (USDA) home loans program offers mortgages to low-income residents of rural areas who cannot otherwise obtain a conventional mortgage.
If you live in a rural area and can't qualify for a conventional loan, you may be eligible for either a USDA guaranteed loan or a USDA direct loan. The home loans program is designed to help lower-income people living in unhealthy or unsafe rural conditions obtain a home with modern utilities and adequate space.
There are three USDA home loan programs:
USDA loans help make purchasing homes more affordable for those in qualifying rural areas. Though you'll still pay closing costs, if you're eligible, you'll likely get a lower interest rate and won't be required to make a down payment. You can do a preliminary check on the USDA eligibility site to see if the address of a home you're interested in and your income qualify. However, it's always best to let an expert help you understand your mortgage options.
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Effective Date: 9/1/2021
All loan approvals are conditional, not guaranteed, and subject to lender review of all information. A loan is conditionally approved when the lender has issued an approval in writing, but until all conditions are met, a loan cannot be funded. Specified rates may not be available for all borrowers. interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Pioneer Mortgage Funding Inc. is an Equal Opportunity Mortgage Broker headquartered in Tampa, Florida. This licensee is performing acts for which a mortgage broker license is required. Pioneer Mortgage Funding Inc. is licensed by the Florida Office of Financial Regulation, NMLS# 1936558. Pioneer Mortgage Funding Inc. is approved to originate Conventional, FHA, VA, and USDA loans, and has the ability to broker such loans to Conventional, FHA, VA, and USDA approved lenders. Pioneer Mortgage Funding Inc. is not acting on behalf of or at the direction of HUD/FHA or the VA.
