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USDA Loans

What is A USDA loan?

A USDA loan is an affordable way for low income individuals living in designated rural areas.

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Loan Requirements

Here's what you need to know.

640 Credit Score

Most lenders require a  minimum credit score is 640.

Income

Your adjusted income cannot be more than 115% of the median income in the area. This loan is for families who demonstrate economic need.

Rural Location

This loan is strictly for designated rural areas. 

Benefits of USDA Loans

  • No Down Payment: A VA loan often allows you to purchase a new home without any initial payment.
  • Competitive Interest Rates: VA loans typically offer favorable interest rates compared to other home loan options.
  • No Private Mortgage Insurance: With VA loans, monthly mortgage insurance payments are not required.
  • 100% Access To Home Equity: A VA loan permits the conversion of up to 100% of your home equity into cash, if you qualify.
  • Sellers Can Cover Closing Costs: The loan agreement might allow sellers to pay for your closing costs.
  • Government Insured: VA loans are backed and secured by the government, providing added security to lenders.
  • Refinancing Opportunities: Existing VA Loan holders might be eligible for a VA Streamline Refinance. If you have a VA loan and want to lower your interest rate with little to no out-of0pocket closing costs. You do not have to provide bank statements, W2s, job verification, or paystubs.
  • Benefits for Disabled Veterans: Those receiving disability payments from the VA, or considered at least 10% disabled, might be eligible for certain fee waivers.

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Take the first step towards homeownership with a USDA loan pre-approval from Prime Rate Mortgage

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USDA Loan Options

Check out some of the loan options we offer.

Purchase

Cash Out Refinance

Streamline Refinance

Renovation

See What's Possible

Use our tools to see what homeownership could look like for you.

Mortgage Calculator

Estimate your monthly payment, including taxes and insurance.

Home Affordability

See how much home you can afford.

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Frequently Asked Questions

Not necessarily, when purchasing a new home, the seller can pay for all or part of your closing. Contact us to help you with this. 

Current or former service members have to meet one or more of the conditions below:

  • I served 181 days during peacetime. (Active Duty)
  • I served 90 days during wartime. (Active Duty)
  • I served 6 years in the Reserves or National Guard.
  • I am the spouse of service member who was killed in the line of duty.
  • I currently receive disability payments from the VA

 

No, You can re-use your entitlement multiple times as long as you have remaining eligibility. Contact us today to have a specialist explain the process.

A VA purchase loan can close within 21 days and a VA refinance within 30 days.

 

These materials are not from HUD, VA, or FHA and were not approved by HUD or any other government agency.

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