What is a USDA Loan 

What is all about USDA Loan?

USDA- rural development loan terms

USDA also known as Rural Development Loan is a government assured home mortgage program that allows you purchase a home with NO Money Down. USDA Loans offer 100% financing to qualified buyers, and facilitate for all closing costs to be either paid for by the vendor or investments into the loan. USDA offers some the cheapest rates of any loan, and you will always have a fixed interest rate.

USDA Loan Eligibility can be determined by three factors:

Credit Worthiness: When an underwriter reviews your credit on a USDA Loan the major thing they will be looking for is a history of paying your bills in a timely fashion. If you have had blemishes in the past they may be overlooked as long as you have reestablished your credit over the past 12 months. Generally, any open judgments or collections will need to be paid off before you close on your new home.

Income: You will need to be able to document your income on a USDA Loan. USDA will generally want to see a two year history of employment or consistent income. Exceptions on the two year requirement can be made for applicants such as students. On a USDA Loan Assets are not required for approval, but can help overcome any possible blemishes on credit.


  • USDA Rural
  • Zero $$ down payment program
  • Existing Homes: One can even buy homes that are existed in the rural areas with the loans.
  • Closing costs to legal fees, from assurance fee to title service and also many other prepaid things may be included with the loans.
  • Refinancing of USDA Rural Development housing loans are permitted.
  • There will be no monthly premium on mortgage insurance.
  • A fixed 30 years rate of interest at market rates.
  • There is also no limit of maximum loan amount.
  • There may be tax deduction on the guarantee fee.

Guaranteed Rural Housing Loan Programs

Banks, savings, loans, mortgage firms and many authorized loan provider institutes have made USDA Rural Development guarantees home loans. From offering water and sewage facilities to construct, repair or buy existing homes, funds are used for the same.

Within just two days or 48 hours, commitments will be issued after receiving a complete filled application.