What Are USDA Home Loans?
USDA Home Loans provide 100% financing for a home purchase, or refinancing, in a USDA designated rural area. These home loans are guaranteed by the United States Department of Agriculture (USDA) and are then serviced by direct lenders that meet federal guidelines. This guaranteed home loan program, managed by the Housing and Community Facilities Program (HCFP) provides a 100% loan guarantee to any traditional mortgage lender, as long as the loan meets all USDA loan guidelines. The individual will then work with the USDA approved lender to make sure the individual meets all the necessary eligibility requirements.

USDA Eligibility Requirements
USDA Home Loan eligibility will be determined by your financial history, and the property you're choosing to buy. First off, the property in question must be in a USDA defined rural area. USDA defined rural areas can change from state to state, but are typically defined as any property located in a rural area, open country, or an area with less than 25,000 residents. This means that even if a property is located on the outskirts of a major city, in some small suburban community, it may still be defined as USDA eligible. For more information on a USDA eligible property in your area, please contact a Smart Mortgage Centers, Inc. representative.

Secondly, your financial and credit history will be evaluated. You need to have an above average credit history with a minimum credit score of 620-640, depending on the lender, and no outstanding debt payments in collections, and no foreclosures or bankruptcies in the past 3 years. However, many USDA approved lenders are willing to accommodate a credit score as low as 580, if you can prove that your low credit score is due to circumstances beyond your control. You must have steady and reliable income and be able to prove that you can afford monthly mortgage payments, as well as any other bills and previous debts you may have incurred. You must be a U.S. citizen, and be within in the income limitations for that designated area.

USDA Home Loan Advantages
Besides having low interest rates and being some of the most credit friendly home mortgages on the market, there are a slew of other benefits that come with this program. First of all, the USDA home loan program is one of the last remaining mortgage programs in the country that require absolutely no down payment. Instead of having to put 3.5% down when purchasing a home, you can save that money and put it towards furnishing the home, making repairs, or put it right back in your pocket. USDA home loans also come with no monthly mortgage insurance, low monthly mortgage payments, and a locked in 30 year low interest rate. For more information about USDA home loans please contact a Smart Mortgage Centers, Inc. Licensed representitive.

To learn more about USDA Loans call (630)854-3459

First time home buyer? Let us help you through the mortgage process. Call 1-630-854-3459 or CLICK HERE to pre-qualify.

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Patty Harrison
Smart Mortgage
Phone: 630-854-3459
Fax: 630-904-1010