USDA or Rural Development Loans aren’t just for farmers or agriculture professionals. This loan type can help families without adequate housing finance the purchase of a home in a rural area and help make the dream of homeownership possible

WHAT IS A USDA MORTGAGE LOAN?
A USDA loan, also known as a Rural Development Loan, is a government-insured home loan backed by the U.S. Department of Agriculture and are designed to promote homeownership in low to moderate-income rural and suburban areas. 

This type of loan requires no downpayment. Additionally, they offer competitive interest rates and can be used for the purchase of a primary residence.

 

WHAT ARE THE REQUIREMENTS TO GET A USDA LOAN?

• The borrower must be a U.S. resident, noncitizen national or permanent resident.
• The property being financed must be in an eligible rural area as defined by the USDA Rural Development.
• The property being financed will be the borrower’s permeant primary residence.
• Borrowers must have an adjusted gross income of no more than 115% of the median income in the area and must show that they have a stable income and can afford the monthly mortgage payments.
• Typically, a credit score of 640 or better is required.

 

USDA Loan Program Advantages:

• No downpayment is required.
• Lower interest rates compared to other loan types.
• Most borrowers are eligible to apply.
• No PMI required – instead there are two other minimal fees borrowers will need to pay, an upfront guaranteed fee that is paid once at the time of closing on the loan, and an annual fee which is usually rolled into the monthly mortgage payment.

DETAILS
The USDA Rural Development Guaranteed Housing Loan Program is a mortgage loan provided by the US Department of Agriculture to rural property owners and is designed to improve the economy and quality of life in rural America. If you have questions or would like more information, contact a First Liberty Bank mortgage lender in Oklahoma City or Norman.

 

Certain restrictions apply on all programs. See your First Liberty Bank Loan Officer for complete program guidelines, loan application, applicable fees, and annual percentage rates (APR’s) for all loan programs. Full underwritten approval is required, and all loan approvals are subject to credit, income and asset review and approval.