USDA Loan Program
The U.S. Department of Agriculture (USDA) - Rural Housing Service loan program is designed to assist approved lenders in providing low and moderate income households the opportunity to own adequate and modest, safe and sanitary single-family dwellings as their primary residence in eligible rural areas.
Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The USDA loan program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to all eligible rural home buyers.
This guaranteed rural housing loan program (also known as the Single Family Housing Guaranteed Loan Program) is offered through the Rural Housing Service (RHS), an agency of the USDA. Its goal is to help low-to-moderate income families achieve homeownership in eligible communities, provided they are qualified.
USDA loan program highlights:
• Max 100% LTV based on the appraisal value. 103.63% is permitted when the guarantee fee is financed
• Attached and detached SFRs, PUDs, Condos
• 30-year fixed rate only (purchase money)
• No down payment required
• No reserves required
• Gift funds permitted
• Minimum FICO score of 620
• Not limited to first-time home buyers
• No monthly mortgage insurance needed
To qualify for the Single Family Housing Guaranteed Loan Program, you must:
• Meet income eligibility (differs by region)
• You must agree to personally occupy the dwelling as their primary residence
• Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
• Have the legal capacity to incur the loan obligation
• Have not been suspended or debarred from participation in federal programs
• Demonstrate the willingness to meet credit obligations in a timely manner
• Purchase a property that meets all program criteria
To find out more about the USDA loan program, please contact Resolution Funding today. As your professional California mortgage lender, we can help you navigate through the program’s sometimes-difficult process. Feel free to apply to see what you are qualified for via our online loan application.