USDA Home Loan Advantages:

• No Down Payment* is required.
• Flexible credit guidelines. (Minimum credit score 620)
• Bankruptcy ok after 3 years
• Foreclosure ok after 3 years
• No maximum purchase price limit.
• Closing costs can be financed in.
• Competitive rates.
• Low monthly mortgage insurance
• Can be used to purchase existing homes, new construction, or foreclosures

USDA HOME LOANS with 100% Financing

A USDA Home Loan is a Government insured loan that allows borrowers to obtain 100% NO MONEY DOWN financing. It is designed to meet the needs of people living in small communities, rural areas, as well as outlying metropolitan areas. These loans are offered by private lenders such as Primary Residential Mortgage and insured by the government.

At PRMI we specialize in USDA Loans. Since we underwrite all of our loans our team of Loan Officers, seasoned Underwriters and support staff have spent years helping people make the dream of homeownership a reality with USDA Loans. We live and work in the same communities where we do business so we truly understand the needs of our customers because they are our neighbors too.

Some of the eligibility standards that determine if you qualify for a USDA loan for your home include what county and zip code the home resides in, your current income and credit history, as well as the number of dependents you can claim.

Benefits of USDA Home Loans

One of the most popular things people know about the USDA Loans is that it is 100% No Money Down. While that is certainly a great feature there are several other benefits and perks to this loan. The USDA Rural Development Loan also has very flexible credit requirements. In most cases borrowers are allowed to have credit scores as low as 620. They are also only required to be 2 years removed from bankruptcy and 3 years from foreclosure. USDA Home Loans do have tramline requirements. Borrowers must have at least 3 trade lines reporting on their credit with at least a 12 month history. If a person does not have this they do allow credit that's referred to as alternative trade lines. Alternative trade lines can be things such as utility bills and cell phone bills. Not only does someone have the benefit of no money down when obtaining one of the USDA Loans they can also benefit from the seller being allowed to pay up to 6% of the sales price towards the borrowers closings costs. In most cases (not always) this is more than enough to cover everything thus allowing the borrower to get into a home with no money out of pocket. USDA Home Loans are usually a cheaper loan compared to the other loan types because of the low monthly mortgage Insurance. This allows borrowers to either save money or afford more home.

Qualifying Areas and Income

USDA Rural Development loans were designed for rural areas and people who are considered low to moderate income. When searching to see if an area qualifies for USDA Loans the easiest way to do this is to look up an area on the USDA Eligibility map. Eligible areas are based on population and the last census is from 2010. This will be update as populations grow and shift.