A USDA home loan is a zero down payment mortgage for eligible rural and suburban homebuyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture.

There are three USDA home loan programs:

Loan guarantees: The USDA guarantees a mortgage issued by a participating local lender — similar to FHA loan and VA-backed loans — allowing the borrow to get low mortgage interest rates, even without a down payment. If the borrower has little or no money down, mortgage insurance will be required

Direct loans: Issued by the USDA: These mortgages are for low- and very low-income applicants. Income thresholds vary by region. With subsidies, interest rates can be as low as 1%.

Home improvement loans and grants: These loans or outright financial awards, permit homeowners to repair or upgrade their homes. Packages can also combine a loan and a grant, providing up to $27,500 in assistance.

Income limits to qualify for a home loan guarantee vary by location and depend on household size. To find the loan guarantee income limit for the county where you live, consult the USDA map and table.

USDA guaranteed home loans can fund only owner-occupied primary residences. Other eligibility requirements apply.

To learn more about FHA’s USDA program, please contact Kenny Minkel @ his direct # (805) 320-7898, or via E-mail @ Kenny@CoastPro.net