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USDA Loan

USDA Loans, officially called Rural Development Loans, are mortgages supported by the U.S. Department of Agriculture. These loans aim to make homeownership more attainable for individuals and families in rural and suburban regions. With advantages like zero down payment and favorable interest rates, USDA Loans are an ideal choice for those who may not meet the criteria for conventional financing.

Why Choose a USDA Loan?

  • Zero Down Payment: Unlike many other loan options, USDA Loans allow you to purchase a home without needing a down payment.
  • Affordable Interest Rates: USDA Loans come with competitively low interest rates, which can significantly reduce your monthly mortgage payments.
  • Flexible Credit Requirements: Borrowers with lower credit scores can still qualify for an FHA loan. While conventional loans may require a credit score of 620 or higher, FHA loans can be obtained with scores as low as 550.
  • Closing Cost Assistance: USDA Loans allow sellers to cover some or all of the closing costs, further lowering your out-of-pocket expenses when buying a home.
  • Support for Rural Communities: By choosing a USDA Loan, you’re investing in your future and contributing to the growth and development of rural and suburban communities across the country.
  • No Private Mortgage Insurance (PMI): USDA Loans do not require PMI, unlike other low down payment loan options. This absence of PMI reduces your monthly payments, making homeownership even more affordable.

 

Click the drop-downs below to learn more about USDA loans

  • Location: The home must be located in a USDA-eligible rural or suburban area. Use the USDA Eligibility Map to check if your desired property qualifies.

  • Income: USDA Loans are intended for low to moderate-income families. Your household income must fall within the limits set by the USDA for your area. You can find these limits on the USDA website or contact us for assistance.

  • Credit: While there is no minimum credit score requirement, we can work with borrowers who have a minimum 550 credit score.

  • Property Requirements: The home must be your primary residence, meet USDA property standards, and be structurally sound, safe, and sanitary.

The USDA sets loan limits determined by area. Please click here to see how much your area qualifies for.

To qualify for a USDA Loan, your household income must meet specific limits set by the USDA. These limits vary by location and household size, typically not exceeding 115% of the area's median income. You'll need to provide proof of income for all adult household members, including pay stubs and tax returns.

 

Click here to see the USDA income limits for your area.

Your credit score is determined by factors such as the types of credit you have (ie. credit cards, student loans, auto loans, etc.) how long you’ve had them, how much credit you're using, and how well you pay your bills.

 

USDA loans have flexible credit requirements. While many lenders prefer higher scores, MARQ Mortgage accepts scores as low as 550.  Higher scores may secure better rates and terms.

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Your journey to homeownership begins with knowledge and ends with the keys to your dream home in hand. Let’s take the first step today and turn your homeowning dreams into reality. Work with us today!