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USDA Loans

USDA Loans: 100% Financing


USDA Loans

USDA Loans are residential mortgage loans that is guaranteed by the government just like FHA Loans and VA Loans.  USDA Rural Development Department offers USDA Loans where no down payment is required and eligible home buyers who qualify for USDA Loans.

USDA Loans: Basics

USDA Loans was created to assist Americans living in rural areas become homeowners and make homeownership affordable.  Americans can utilize using USDA Loans to purhcase and refinance a home.  The biggest advantage and benefit of a USDA Loan is that these government guaranteed loans offer no down payment from the home buyer and 100% financing.  A qualified home buyer can purchase a home with no money down and no closing costs with a USDA Loan.

Terms and Rates on USDA Loans

The benefits of going with a USDA Loan cannot be matched by any other mortgage loan program with the exception for a VA Loan, which is only limited for veterans of the United States Armed Services.

The no money down, 100% financing makes USDA Loans extremely desireable and by far the most popular residential mortgage loan program in the United States with the exception of VA loan programs.

Mortgage Rates on USDA Loans are extremely competitive.  USDA mortgage rates are one of the lowest than any other mortgage loan program.  Mortgage rates on USDA Loans depends on the USDA mortgage lender and the borrower’s credit scores has an impact on what mortgage rates the borrower can get offered.

How do I qualify for a USDA Loan?

There are certain eligibility requirements in order to qualify for a USDA Loan.  There are maximum income restrictions to qualify for a USDA Loan.  You cannot make millions and qualify for a USDA Loan.  Here are the basic eligibility requirements to qualify for a USDA Loan.

  • Income eligibility to qualify for a USDA Loan is capped at 115 percent of your median area income.
  • USDA Loans are 30-year fixed rate mortgage loans.
  • The maximum debt to income ratios allowed are 29% front end debt to income ratios and 41% back end debt to income ratios.
  • The is a mandatory wating period of 2 years after a bankruptcy discharge date to qualify for a USDA Loan and three year waiting period after a foreclosure, deed in lieu of foreclosure, or short sale.
  • Not all areas are eligibible for a USDA Loan.  The subject property needs to be in a designated USDA approved county.
  • You can’t own another home within commuting distance of the home you wish to purchase.

Gustan Cho Associates: USDA Mortgage Lender with no overlays

If you are looking for a USDA Approved Mortgage Lender, contact Gustan Cho Associates at 262-716-8151 or email Gustan Cho at GustanCho@Outlook.com.  You can visit Gustan Cho Associates at www.gustancho.com.  Gustan Cho Associates is a full service mortgage banker and correspondent mortgage lenders with no lender overlays.  Gustan Cho Associates are residential mortgage bankers and commercial mortgage lenders and is associated with Hard Money Capital Group and Private Money Capital Group.

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