What Is A USDA Loan?
A USDA loan, United States Department of Agriculture (USDA), is a mortgage loan offered to home buyers to encourage them to live in rural and suburban areas. The intention is to promote growth and boost local economies by making land and property more affordable.
What Can I Use A USDA Loan For?
USDA loans are great for first time home buyers that want to live in less densely populated areas of the country because a USDA loan offers 100% financing (zero down payment). However, you do not need to be a first time home buyer to use a USDA loan.
USDA Loan Requirements
- Income Requirements: Each county has specific income requirements to determine eligibility, to find out if you are eligible give me a call
- Down Payment: There typically is no down payment for most USDA loans
- Credit Score: The minimum credit required to obtain a Long Beach Home Loan FHA loan is a middle score of 620 (special circumstances may allow for lower scores).
- Property Requirements: All USDA loans must meet the specific requirements set forth by the USDA. The USDA office has final approval before closing on the loan.
USDA Mortgage Insurance Premiums
Also known as the USDA guarantee fee, the lender guarantee is partially funded via the USDA mortgage insurance premium. There are two types of premiums, the first is 1% of the base loan amount and the second is an annual fee of .35%.
Working With A Qualified Lender
At Long Beach Home Loan we are committed to serving clients throughout the state of California with all of their home needs. If you are thinking about purchasing a home with a USDA loan, we can help! Contact me, Jack Skovgard (562-340-9453), for any questions you may have about USDA loans to see if one might be right for you.