USDA Loans – Mortgage Guidelines

About USDA Loans

What Are USDA Loans?

The USDA Rural Development Loan Program, or USDA loans for short, are designed to make rural housing more affordable. USDA loan program eligibility depends upon applicant income and the purchase property location. The USDA Rural Housing program is for residential purchases and rate-and-term refinances only – no cash out refinancing. All USDA loans are 30-year fixed rate mortgages.

USDA Loans – No Down Payment

One of the most appealing features of USDA Rural Development loans is that you can finance a home with no down payment. In other words, you can finance 100% of a home’s purchase price via the USDA.

USDA Mortgage Insurance

The USDA Rural Housing Program requires an upfront mortgage insurance fee at closing. The amount varies depending on loan size, but is relatively cheaper than FHA mortgage insurance premiums. If the upfront mortgage insurance premium is a burden, the USDA allows gifts from family and non-family members. A licensed Inlanta Mortgage loan officer can explain the USDA mortgage insurance requirements in more detail.

USDA Loan Eligibility

In order to utilize the USDA Rural Housing Program, your home must be located in a rural area. Although the term “rural” might not seem to apply to you – several suburbs and outlying communities of most major U.S. cities meet the USDA property location requirements. Check your property eligibility here: Rural Housing Property Eligibility.

Since the program is designed to help low-income individuals or households purchase homes – the USDA Rural Development Program also has income limits. Check the income limits for your area here: USDA Rural Housing Income Limits.

Apply for USDA Rural Housing Mortgage Loan

Inlanta Mortgage is an approved USDA Rural Housing Program Lender. Use our branch locator to find a licensed mortgage loan officer near you, or apply online now. If you apply online now, we will match you with a loan officer licensed to originate loans in your state.

The information provided in this post is not meant to be comprehensive. For more information on USDA mortgage loans, contact a licensed mortgage loan officer directly.

About Inlanta Mortgage

Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS #1016. Inlanta Mortgage is a proud recent recipient of a Top Mortgage Lenders 2012 Award from Scotsman Guide and was recently recognized as one of the Fastest Growing Firms in the Milwaukee-Area by the Milwaukee Business Journal.

VA Mortgages – No Down Payment Needed

VA Mortgages

What are VA Loans?

VA mortgage loans are designed to help our nation’s veterans purchase a home or refinance their existing mortgage.

Veterans with qualifying credit and income can purchase a home with no money down, no private mortgage insurance, and competitive interest rates. To qualify for a VA loan, a veteran must have served 181 days during peacetime, 90 days during war time, or 6 years in the Reserves or National Guard. Spouses of veterans may also qualify under specific circumstances. Contact a licensed Inlanta Mortgage loan professional to discuss this unique loan program available to qualifying veterans and spouses.

VA Refinancing Options – IRRRL

Under the VA guaranteed mortgage loan program, eligible veterans may refinance their existing mortgage with an Interest Rate Reduction Loan (IRRRL). IRRRL’s, or VA Streamline Refinance Loans, help veterans refinance their current mortgage interest rate to a lower rate.

Features & Requirements of the IRRRL:

  • Closing costs can be rolled into cost of loan
  • Lender may allow reduced closing costs in exchange for higher interest rate
  • Veterans must be current on mortgage with no more than one 30-day late payment in the last year
  • You cannot receive any cash back from an IRRRL
  • You must certify that you have previously occupied the property
  • You must have financed the original mortgage using your VA Loan eligibility

VA Cash-Out Refinance Loan

This loan allows eligible veterans to refinance their conventional or VA loan into a lower rate while also taking cash from the home’s value. Just like the VA Streamline Refinance, the home must be the principal residence of the owner. Use our branch locator to contact a loan officer near you to learn more about VA mortgages.

About Inlanta Mortgage

Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

Rural Development Loans – USDA

USDA Rural Development Loans

What’s So Great About USDA Loans?

Answer: 100% financing.

The USDA rural development loan program is a program designed to make rural housing more affordable. USDA loan program eligibility depends upon applicant income and the purchase property location. With USDA rural development loans, you can finance 100% of the home value with no down payment.

USDA Program Changing Next March

On October 1, 2012, the USDA was expected to revise its definition of “rural”. This revision would have made USDA rural development funding more restrictive. Eligibility would have been limited to communities with a population less than 20,000 not located within a MSA (metropolitan statistical area). Half the rural population in America lives within a MSA and would be ineligible for the USDA rural development loan program if this change had been implemented.  These changes are now delayed until March 27, 2013.

Communities in Wisconsin that could be affected if the change is implemented next March include: Burlington, Hartford, Muskego, Port Washington, Portage, River Falls, Stoughton, Sussex, Vernon, and Waunakee. A very large number of Florida communities could be affected as well. For a complete list of communities that may potentially be affected by tighter rural development eligibility restrictions click here.

How do I check if my home is USDA / Rural Housing-eligible?

With the USDA Rural Housing Program, your home must be located in a rural area. However, the USDA’s definition of “rural” is quite liberal. Many small towns meet the USDA requirements, as do suburbs and exurbs of most major U.S. cities. Click here to check your home’s USDA loan eligibility.

What is the USDA program’s minimum downpayment?

The USDA has no down payment requirement. You can finance 100% with a USDA loan.

Is the USDA loan program limited to first-time buyers?

No, the USDA Rural Housing Program can be used by first-time buyers and repeat buyers.

What mortgage products are available with a USDA mortgage?

The USDA / Rural Housing Program offers 30-year fixed rate mortgages only. There is no 15-year fixed rate mortgage and no adjustable-rate mortgages.

Need more information on the USDA rural development loan program? Consult a licensed mortgage loan professional near you.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage was named a 2012 Top Workplace in Southeastern Wisconsin.

VA Mortgage Loans

VA Mortgage Loans

Mortgage loan programs come in many shapes and sizes. Okay…maybe not different shapes or sizes…but there are a variety of mortgage loan programs available. One program is specifically designed to help our nation’s veterans – the VA Mortgage Loan.

VA Mortgage Loans

A VA mortgage loan is a federally guaranteed mortgage loan for veterans that does not require a down payment or private mortgage insurance. This is an excellent benefit for eligible veterans. Private mortgage insurance is usually required if a down payment of 20% is not provided – with the VA mortgage loan both the down payment and private mortgage insurance requirements are waived.

Who’s eligible?
Veterans who served on active duty and have a discharge other than
dishonorable after a minimum of 90 days of service during wartime or a
minimum of 181 continuous days during peacetime are eligible to apply for the VA Mortgage Loan. There is a two-year requirement if the veteran enlisted and began service after September 7,1980 or was an officer and began service after October 16, 1981. There is a six-year requirement for National guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses.

All veterans must qualify for the VA mortgage loan –  they are not automatically eligible for the program. The guaranty means the lender is protected against loss if you or a later owner fails to repay the VA mortgage loan. Click here to contact a licensed mortgage lender and discuss your VA Mortgage Loan options.

If you are a United States veteran you are probably already familiar with the Department of Veterans Affairs website, if not, it is a great resource for finding out about your veterans benefits. Click here to access the Department of Veterans Affairs Home Page.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, WI. NMLS#1016.