USDA loans, often referred to as “Rural Loans”, are designed to help those with moderate and lower incomes who live in rural areas. There are household income and debt-to-income restrictions which are more strict than other types of loans. USDA loans are backed by the United States Department of Agriculture. To determine if the area you’re looking to buy in falls in a “rural” area, please call LendRight Mortgage and we can help you determine eligible areas.
Features of USDA/Rural Loans:
- No down payment required
- Max LTV (loan-to-value) for purchase and refinance: 100%
- Lower interest rates than most other loans
- Available only to those in “rural” areas as determined by the USDA
- 1% upfront guarantee fee based on the loan amount
- Life-of-loan monthly mortgage insurance at an annual fee rate of 0.35%