TRUSTCO 

USDA Loan Highlights

With flexible requirements, USDA loans feature: 

• 100% financing + required guarantee fee = 102% of the appraised value

• Low FICO score requirements

• Low interest rates

• Low closing costs

• Gift funds can be used for closing costs

• 30-year, fixed-rate mortgage

 

USDA Loan Eligibility

 

Eligibility is based on the property size, location and condition along with income and other qualifying factors.

Some of these requirements include:

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• Property must be located in a USDA designated rural area

• Maximum loan limits vary based on location

• Household members can have a total income of up to 115% of the medial income for the area

• Household must be able to afford the mortgage payment, including property taxes, homeowners insurance             and the annual guarantee fee payable on a monthly basis.

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The USDA guarantees a mortgage issued by a participating local lender similar to an FHA loan and VA-backed loans  allowing you to get low mortgage interest rates. USDA Loans offer 100% financing to qualified buyers, and allow for all closing costs to be either paid for by the seller or financed into the loan.

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USDA home loan applicants may have an income of up to 115% of the median income for the area.

Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.

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USDA Home Loans have Maximum Household Income Limits which vary by the County. 

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