Important Things You Need to Know About USDA Loans – Berkshire Lending – Medium

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Important Things You Need to Know About USDA Loans – Berkshire Lending – Medium


USDA loans are another 100% loan program. It’s a lending program that is put out by the US Department of Agriculture. The purpose of the program is to promote rural development of housing.

If you are considering a USDA loan there are two things you should be aware of…

1) There are geographic restrictions. Not every area is eligible for USDA financing.

The best thing to do is enter the address of the home or area you are interested in and see if it’s eligible for USDA financing.

Here is the link to check your address: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp

2) USDA has household income caps. In other words, it’s possible to make too much to qualify for a USDA loan.

You will need to enter your total household income into the link below and see if your family qualifies.

Here is the link to check the income for your area… https://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state

Advantages of USDA:

  1. USDA loans are 100% loans. No down payment is required! Low monthly mortgage insurance. At the time of this writing the monthly MI is .40 x the loan amount divided by 12.

2. Flexible credit guidelines. For the most part most lenders are at 620 and up for credit scores on this program.

3. USDA loans allow the seller to pay the borrowers closing costs and pre paid expenses (taxes and insurance) at closing up to 6% of the sales price.

Disadvantages of USDA: There are income and geographic restrictions on USDA loans. Generally USDA loans are not available in large to medium sized cities. Please refer to the map referenced above in this report to see if the property or area you are interested in is qualified for USDA loans.

USDA is a great program. …100% financing with a low fixed interest rate.

Please shoot us an email on info@berkshirelending.com or give us a call on 888–875–7675. If you would like to explore more about Mortgage loan in Texas then feel free to contact Mr. Brett, best mortgage advisor in Texas.



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