Settling down in a rural area doesn’t mean you have to settle for a higher mortgage. Before you apply for a conventional loan, consider a USDA loan. From minimal down payments to no maximum purchase price, a USDA loan may be the best choice for your future home.
On the fence regarding a USDA loan, or unsure of where to begin with applying for one? Central Bank can help you make a decision that’s suited to your needs and financial situation.
The United States Department of Agriculture (USDA) offers two types of loans for single family residential dwellings: Single Family Housing Guaranteed and Single Family Housing Direct.
The requirements for each loan varies, but overall, a USDA home loan provides a minimal down payment, no monthly mortgage insurance, and lower payments than traditional mortgage loans. Other benefits of a USDA home loan include:
A Single Family Housing Guaranteed Loan helps lenders approved by the USDA provide low- or moderate-income households with the means to own modest, safe, and adequate dwellings in eligible rural areas. This loan is not limited to first-time homebuyers.
The Single Family Housing Direct Home Loan Program helps applicants who qualify as low- or very-low-income to obtain safe, decent, sanitary housing in eligible rural areas with payment assistance. Also referred to as the Section 502 Direct Loan Program, the amount of assistance for this loan option is adjusted based on the household’s financial situation.
If you don’t plan to live in a traditional single family home, or only want to repair or refinance your current rural home, other USDA home loan options include:
Your eligibility for a USDA home loan is dependent on the location of your current or future property and your household income. In addition to the tools available from the USDA, your local Central Bank location can help you determine if you qualify.
Choosing the loan that’s best for your future home doesn’t have to be overwhelming. By getting prequalified for a home loan, you can streamline the shopping process and narrow down your loan options sooner. Visit a Central Bank location near you to receive a personalized USDA home loan quote, or complete your prequalification online today.
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This icon indicates a link to third-party content. By clicking on the link, you will leave our website and enter a site not owned by the bank. The site you will enter may be less secure and may have a privacy statement that differs from the bank. The products and services offered on this third-party website are not provided or guaranteed by the bank.
Member FDIC. Equal Housing Lender. NMLS #407985
© 2024
This icon indicates a link to third-party content. By clicking on the link, you will leave our website and enter a site not owned by the bank. The site you will enter may be less secure and may have a privacy statement that differs from the bank. The products and services offered on this third-party website are not provided or guaranteed by the bank.
Member FDIC. Equal Housing Lender. NMLS #407985
© 2024
