Breaking Down the USDA Loan
The USDA loan is a home mortgage option guaranteed by the U.S. Department of Agriculture. These home loans have special requirements you won't typically find in other mortgage options, such as income limits and restrictions on where a homebuyer may purchase.
Fortunately, Neighbors Bank specializes in USDA loans, helping homebuyers navigate the USDA's requirements and obtain a $0 down payment home loan.
Eligibility is two-fold with a USDA loan. First, the property you’re purchasing must be located in a designated rural area. Luckily, the vast majority of the United States is eligible. Speak with a Neighbors Bank home loan specialist to help you navigate designated rural areas.
And second, the homebuyer must meet certain requirements, that include:
There is not a stated minimum credit score for the USDA loan. However, most lenders require a 640 to use the USDA's automated underwriting system. Homebuyers below a 640 may still be eligible, but will be subject to manual underwriting.
Arguably the largest benefit of the USDA loan is the zero down payment option. Additionally, the USDA's up-front guarantee fee and annual fee is less than what you'd find with an FHA or conventional loan.
If you're considering a USDA loan, keep the following in mind:
USDA loans are a great option for rural buyers. Speak with a Neighbors Bank home loan specialist today to see if you're eligible.
Speak with a Neighbors Bank home loan specialist today to see if you're eligible.Reach out today for guidance.