USDA Loans: The Single Family Guaranteed Loan Program

What are USDA loans? The USDA Loans was created to help approved lenders in providing low and moderate-income households the possibility to own adequate, modest, safe, and clean houses as their primary residence in eligible rural areas. This program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural home buyers. Sometimes called a “Rural Housing Loan” or a “Section 502” loan, there are a number of exurban and suburban neighborhoods nationwide in which USDA can be used. You may be surprised to know that a large number of Colorado counties have properties that fit the USDA’s requirements, including areas near Aurora, Denver, Boulder, Colorado Springs, and Greeley. Has come up with a down payment been a problem in the past and kept you from purchasing a house fret no more?

Who may be Eligible for this Program?

• Meet Income-Eligibility. Find out at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.
• Find out if your dream home is in an eligible area http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.
• Agree to personally be occupying the residence as your primary residence.
• Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
• Have a 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

Benefits at a Glance:

• No down payments
• Competitive
• 100% Financing
• Eligibility requirements cater to low to average-income borrowers

More Key Information:

• No down payments, once qualified you have the option to pay nothing out of pocket for a down payment.
• Flexible credit guidelines.  You are still required to submit your credit report, but the USDA is far more lenient in what is considered to be acceptable.
• No maximum purchase price.  No, there is no limit on the purchase price as long as the lender determines you are able to make the payments.
• 100% Financing.  In case “no down payment” hasn’t given it away, the U.S. government will finance 100% percent of your home once you are deemed eligible.
• Many property types are included.  If your home is new, previously owned, modular, planned unit development, a condo, or a manufactured… it is eligible.