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USDA Loans

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Credit Score Needed: 580+
Down Payment Needed: 0%

USDA Mortgage Loans

A USDA home loan is a great deal for borrowers who want to live in a rural area. Like other government loans, these are great deals especially for single-family homes. Although the home can have more land, it cannot be mainly an income property.

For example, it can have space for a large garden and chickens, but not be a commercial farm.

USDA Income Limits

Compared to other types of home loans, the USDA limits how much money you can make. It depends on the location, and you can see the income limits here. Similar to other government loans like FHA, these loans have the purpose to get borrowers into homes, not build their property portfolio.

USDA Loan Down Payment

You can get into a USDA loan with zero down!

No Private Mortgage Insurance

Even with zero down, USDA loans don’t have private mortgage insurance. But, they do have something called an annual guarantee fee. The good thing is that the fee is less than PMI.

Income Requirements

Although you can’t make too much money, your income still has to cover your bills and mortgage payment comfortably.
The maximum DTI for most USDA loans is 41%. Here’s an example of a 33.3% DTI.

  • Total monthly debts – $2,000
  • Gross monthly income – $6,000

The calculation would be $2,000 divided by $6,000 = 33.3%.
If you receive child support, you may be able to count it in your income. Check with your loan advisor.

USDA Loan Alternative

If you’re shopping in a rural area, check out USDA loans first. Otherwise, FHA and conventional are the other choices unless you’re eligible for a VA loan.

Homestead is a top lender of USDA home loans for purchasing and refinancing. Our rates are some of the lowest in the states we serve. Our loan advisors provide excellent service, as you can tell from our reviews. Plus, we close fast!

What they say about us.

Couple looking into adjustable rate mortgage loan by Homestead Financial

Kathy B. says…

Oh my gosh! My experience was one in a million! Paul was fantastic to work with. He is very knowledgeable and also very personable! When the piece of mail came from Homestead, I thought, "Oh, this is a scam," but the more I looked at it, the more I went online to check it out. After the little bit of research I did, I was still afraid to call, thinking I somehow was going to get taken. I WAS SO WRONG! Glen was the first gentleman to answer the phone. He was very nice and pleasant and got me over to Loan Advisor Paul Hughes. Paul pretty much eased my nerves/fears, and when I got my first email from him, I was like, OMG...he IS real! (lol) Anyway, I am so happy. Even though right now my rate is a little higher, I still accomplished what I wanted to do and still came out ahead in the end, and it's only going to get better when he can streamline my loan after 6 months. I told him I was going to be on his trail if I hadn't heard from him in January. We both laughed, and he told me he had my name and number down to get in touch.

Sara P. says…

I had a wonderful experience working with Brian Agee. He made the whole process easy and very transparent. He was extremely responsive and always ready to answer questions. He helped us with a cash-out refinance, which allowed us to pay off debt and get into a comfortable financial position. I’m so grateful we worked with Brian and that he helped us reach our goals.

Doug H. says…

I chose Homestead Financial based on the reviews I saw about them. I was not disappointed! They were very professional, proactive, and very responsive. They never left me wondering where we were at during the process. The people I worked with directly were amazing. I felt like I was always taken care of throughout the entire process, and I was given updates the whole way. I definitely recommend them to anyone who is looking to refinance their home loan!

Darby B. says…

I received a postcard mailer from Homestead. After my husband and I discussed this, we reached out to Sean Ingold with Homestead on a random weeknight. Yes, a real human answered the phone! I was already impressed by this, but after talking to Sean, we were ready to take the next step. They made everything very easy. We even had a closing agent come to our home to finalize the documents. I look forward to doing business with Homestead in the future.

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