USDA home loans are government-backed loans that are offered to borrowers in rural areas.  These areas are determined by the US Department of Agriculture and are usually restricted to areas with a low population density—generally towns of no more than 25,000.

You can use a USDA home loan for both a purchase or refinance.  The refinance must be on your primary residence and there is no “cash out” option.

Some benefits of USDA are:

• 100% financing
• No monthly mortgage insurance
• No asset or automatic reserve requirements
• Gifts allowed for closing costs
• Required property improvements can be financed into the loan up to 102% of the “improved” value. (USDA will allow repairs to be completed after closing!)

If you would like to get more information, or see if you qualify for an USDA home loan, please contact one of our Financial Specialists today!