With this loan, homebuyers can construct new homes, enhance existing properties, or relocate to rural areas. Approved lenders, like us, receive a 90% loan note guarantee from USDA, enabling qualified borrowers to benefit from a 0% down payment and the option to use gift funds for closing costs.
The USDA Loan* program aids mid to low-income households in owning homes in eligible rural areas, providing decent, sanitary, and safe housing opportunities.
General Guidelines:
- Eligible Rural Areas: USDA loans are specifically designed to help families in mid to low income households own homes in eligible rural areas.
- Property Use: The loan can be used to build new homes, improve existing homes, or relocate to a home in a rural area.
- Zero Down Payment: USDA loans require no down payment, making homeownership more accessible for qualified borrowers.
- Closing Cost Gift Funds: Borrowers have the opportunity to use gift funds for closing costs, reducing the upfront expenses associated with buying a home.
- Income Eligibility: USDA loans have income restrictions based on the household size and location. Applicants must meet the income requirements to qualify for the loan.