USDA Loan Calculator
Frequently Asked Questions About USDA Loans
Q. What are USDA home loans?
A. The USDA home loan program is a zero down payment mortgage that is backed by the United States Department of Agriculture.
The USDA loan was created to help low to moderate-income home buyers purchase homes in designated rural areas across the United States. The USDA home loans do not require a down payment, and the home seller is permitted to pay a large percentage of the buyer's closing costs. The subject home must be located in a approved area. USDA loan applicants must meet the typical income, credit, employment, and cash savings requirements.
Q. What are the benefits of a USDA loan?
A. The benefits of a USDA home loan include:
- no down payment requirement;
- allowable seller paid closing costs up to 6% of the sales price;
- reasonable interest rates and;
- affordable mortgage insurance
Q. Are USDA loans good?
A. USDA loans are very good because the overall costs are less than most other mortgages.
Q. How much can I borrow?
A. Believe it or not, the USDA loan program does not have a lending limit, however, the applicant must meet the debt to income limits, which in turn limits the amount of money that can be borrowed.