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Flat Branch Home LoansUSDA Loan Program

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.

No Down Payment

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.

Not Limited to First-Time Home Buyers

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.

Qualifying Properties for USDA

The following are requirements for a property to qualify for a USDA home loan:

  • Must be a rural or suburban residence
     
  • Income-producing land or structures are not allowed
     
  • Roof must have a remaining life of at least 2 years
     
  • Floor or wall heating sources are allowed as long as they are permanent, safe, and adequate
     
  • A wet basement or crawlspace must be cured prior to closing
     
  • Smoke detectors are required
     
  • Must have adequate hot water services
     

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.