What is a USDA Loan?
A USDA home loan is a mortgage offered to rural property owners by the U.S. Department of Agriculture. USDA loans are typically fixed-rate and terms usually run from 10-30 years.
What are the requirements for a USDA loan?
USDA loan guidelines vary by state and type of property being purchased. Check your eligibility here. Requirements for any USDA loan include:
Pros of a USDA Loan
USDA loans are advantageous to those looking to buy in rural areas. This 100% financing loan requires 0% down. In addition, the mortgage insurance rates are lower than those of FHA or conventional loans, and credit score requirements are more lenient than conventional loans.
Cons of a USDA Loan
USDA loans have strict requirements for household income and type of property. If you want to live in a more densely-populated area, have high income, or have funds for a down payment, a USDA loan is not a choice for you.
Finding the best loan for your personal needs can be overwhelming. New England Home Mortgage strives to help you understand all your options and find the best fit for your financial situation. Read an overview of our mortgage options here, or contact us today for an in-person appointment.