The United States Department of Agriculture (USDA) loan program allows buyers to purchase a primary residence in a rural or suburban area without a down payment, while obtaining a favorable interest rate. USDA interest rates are often lower than other loan programs. All USDA loans are insured by the US Government.
USDA does charge an annual service fee of 0.35% of the total loan amount. This fee is spread out over the course of the year and is made when you make your monthly loan payment. The USDA also charges an upfront fee of 1.0% of the loan amount. This is a one-time fee that can be rolled into the loan.
Annual household income limits may apply to USDA mortgages and unlike other loan programs, daycare expenses and other allowable expenses may be deducted from your annual income to help keep you under the limit. Your Flat Branch Home Loans mortgage banker can calculate your household income to make sure you are eligible.
The following are requirements for a property to qualify for a USDA home loan:
Want to check if the property you're interested in is USDA eligible? Please reach out to your Flat Branch loan officer or an eligibility map can be found at the USDA Website.