- First-time Homebuyers
- Down Payment Assistance
- Conventional Loans
- FHA Loans
- USDA Loans
- VA Loans
- Community Champions
- HomeReady Program
- Home Possible
- Jumbo Loans
USDA Loan Program Provided by Flat Branch Home Loans
Flat Branch Home Loans strongly believes USDA can provide families affordable homeownership programs while promoting the vitality of all citizens in rural America. The USDA home loan program allows buyers to purchase primary residence without a down payment all the while maintaining a favorable interest rate. USDA interest rates are often lower than other loan programs and they provide closing cost options to meet your purchasing needs.
Who is eligible?
The home must be located in a USDA-eligible area or a “rural” area. Ask one of our local lenders if your house fits the geographic areas needed to apply for a USDA home loan.
It’s beneficial to know USDA is not limited to first time homebuyers, but the benefits of its home loan program truly meets the needs of both the experienced and first time homebuyer.
No Down Payment necessary
Great Interest rates
Loans up to $424,100
Insured by the Government*
Closing cost can be rolled into the loan**
* 30-45 day closing times are common.
** Ask your loan officer if you qualify, as a higher value is required
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- 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 is not acceptable, this must be cured prior to closing.
- Smoke detectors are required.
- Property must have adequate hot water services.
USDA’s No Down Payment program adds ease and affordability to your home loan process. This is a significant amount of money right out of the gate, and Flat Branch Home Loans and USDA value where your money is going along the home loan journey. Closing cost options are another expense that bears its weight. Closing costs remain a general expense for all mortgage programs, but USDA allows gifts and other options to help with payment. Fixed interest rates and fixed terms are important to note in this program. Also, USDA’s interest rates are competitive with FHA mortgages and usually lower than conventional mortgages. USDA maintains reasonable credit qualifications, acknowledging some first time homebuyers may not have had the lengthy time needed to build a strong credit score. The loan program asks for a minimum credit of 600, which competes right around even with other conventional mortgages. USDA also offers a loan to those that have no credit score* (Ask Loan officer)
The primary advantage to this program is that the borrower doesn’t pay monthly mortgage insurance, making the monthly payments more affordable for you and your family. USDA does charge an expected, annual service fee of 0.35% of the total loan amount. This fee is broken up equally and paid monthly. Therefore, the monthly payment amount equates to 1/12th or little less than 0.03% of the annual fee each month. USDA also charges an upfront funding fee of 1.0% of the loan amount. This is a one-time fee that can be rolled into the loan.