What is a USDA Loan?

USDA Home Loans provide up to 100% financing for a home purchase or refinance. These loans are guaranteed by the USDA and are serviced by direct lenders that meet federal guidelines. There are many qualifying factors for a USDA home loan, things such as income limits and loan amount may limit eligibility.

USDA Loan Limits

USDA Income Limitations

USDA Home Loan Guidelines

USDA Loan Information

Loan Guarantee Program (Section 502)

The Guaranteed Loan Program, managed by the Housing and Community Facilities Programs (HCFP), provides a loan guarantee, to a mortgage lender, on loans that meet USDA loan guidelines. An individual looking to get approved for a USDA loan would work with a lender that is approved to offer these loans and would make his or her payments to that lender after closing.

Loan guarantees are offered on a variety of government sponsored mortgage programs and enable mortgage lenders to provide a loans to borrowers that they would not traditionally be able to approve.

One of the biggest hurdles to overcome for new homeowners is coming up with the initial down payment. With a USDA home loan a borrower can finance up to 102% of the homes value which includes the guarantee fee.