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Did you know that most of the country actually falls under the option of a United States Department of Agriculture (USDA) loan? More than 95% of the land for sale is USDA eligible. The kicker is that they are usually more rural areas. This doesn’t mean you can’t be near the city, it just means you may be outside city limits. Check the qualification map to see if your desired property qualifies.
Although they are typically more rural areas, this does not always mean farms or rolling acres. This loan product offers assistance in providing low and moderate—income households opportunities to live in a more modest, safe, and private dwelling as a primary residence. (This does not include investment properties.) The applicant must agree to live in this property full time.
This program does not require a down payment but it does require a minimum credit score (620 average) and has income limits. Any and all members of the household can not exceed the income limit. This limit is determined by the location, so check here for more information. The applicant must not exceed 115% the median income in that county – this includes all eligible individuals able to work in the household, regardless if they are on the loan. This includes bonus’, commissions, etc.
USDA Loan Features:
Must meet income and credit standards
Little-to-no down payment
Must be USDA Eligible (up to 97% of United States land is eligible)
Eligible applicants may build, rehabilitate, improve, or relocate a dwelling in an eligible rural area.
Note that the USDA loan program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural home-buyers.
USDA Eligibility Site (Opens in new window)