USDA loans are a government-backed mortgage option to promote homeownership in rural and suburban areas.
These loans offer unique benefits, including no down payment and competitive interest rates, making them an attractive option for eligible homebuyers.
Compass Mortgage is dedicated to helping clients navigate the USDA loan process quickly and confidently.
A USDA loan is a mortgage option provided by the United States Department of Agriculture to assist low-to-moderate-income individuals in purchasing homes in eligible rural areas.
The USDA loan program was established in 1991 under the Department of Agriculture’s Rural Development program. The goal is to improve the quality of life and economic stability for rural communities nationwide.
The program provides affordable home financing options to support rural communities and ensure sustainable development.
USDA loans offer various options to support homeownership in rural areas, each tailored to meet the needs of different borrower profiles, from moderate-income families to those with low income seeking to improve their living conditions.
USDA loan repayment terms are designed to be flexible and affordable, making it easier for borrowers to manage their mortgage payments effectively.
USDA loans typically offer repayment terms of 30 years, providing a predictable and manageable payment schedule for borrowers.
Borrowers can choose from various payment plans—including fixed-rate and adjustable-rate options—to suit their particular financial situation.
USDA loans offer competitive interest rates which can be fixed for the life of the loan or adjustable, depending on the borrower’s preference.
USDA loans offer a range of compelling benefits that make homeownership more attainable for many individuals and families.
Understanding the eligibility criteria for USDA loans is crucial for potential homebuyers looking to take advantage of this beneficial program.
Securing a USDA loan can be a straightforward path to homeownership in rural areas, but acquiring the loan requires understanding and following a specific application process.
Applying for a USDA loan involves several steps, including pre-qualification, submitting a formal application and undergoing a thorough review by the lender and the USDA.
The approval process for a USDA loan can vary depending on each unique case but is often processed within weeks.
Compass Mortgage helps facilitate USDA loans, offering borrowers personalized guidance, expert advice and exceptional customer support to ensure a seamless loan application experience.
Compass Mortgage provides personalized guidance throughout the USDA loan process, helping clients understand their options and choose the best loan for their needs.
Ask us about Get Committed®, a unique program offered by Compass Mortgage which can offer you a loan commitment even before you locate the home (or property) you wish to buy.
With years of experience in the mortgage industry, Compass Mortgage offers expert advice and support, ensuring a smooth and successful loan application process.
Customer satisfaction is a top priority at Compass Mortgage. Our team is dedicated to providing clear communication and timely updates, making the experience as stress-free as possible.
Understanding the specifics of USDA loans is essential for potential borrowers, and here are some frequently asked questions to help clarify the process and benefits.
Yes, USDA loans can be used for home improvements, repairs and modernization, mainly through the USDA’s repair loans and grants program.
Yes, closing costs are associated with USDA loans, similar to other types of mortgages. However, these costs can sometimes be included in the loan amount.
Yes, USDA loans have income limits based on the median income in the area where the property is located. These limits vary by location and household size.
USDA loans must be used to purchase a primary residence. They cannot be used for investment properties, vacation homes or commercial properties.
Our mortgage professionals at Compass Mortgage can help you understand all of your options and resources for making your home purchase affordable.
Depending on your purchase loan, you may need to account for other expenses, both up-front costs as well as those included in your ongoing monthly payment. These will be clearly outlined as your loan is processed and before you close.
Beyond the initial 2-1 buydown cost, you may also need to make a down payment, which can be anywhere from 3-20% of the home price.
You’ll also need to pay closing costs, which cover expenses such as loan origination fees, an appraisal, up-front mortgage insurance and title insurance. Closing costs typically range from 1-3% of your total loan amount.
Certain purchase loans offer options to help you afford these costs, including FHA and VA loans.
No matter your circumstances, we’ll gladly help you explore options that could help you purchase a home. Contact us at Compass Mortgage today!