USDA Loans
Unlock Rural Homeownership
We specialize in providing affordable financing solutions for rural homeownership dreams.
Fulfill Your Dream of Rural Home with USDA Loans
At Supreme Mortgage, we understand that finding affordable home financing in rural areas can be challenging. That’s why we offer United States Department of Agriculture (USDA) loans, providing flexible and low-interest financing options for eligible properties in designated rural and suburban areas.
The Buying Process
Once you have completed our Apply Now form, we will guide you through a process consisting of four steps.
Review
We will review your application and then contact you to discuss the next steps in the loan process.
Pre-Approve
Once pre-approved, we’ll help you select the loan that meets your needs. We will then order an appraisal and send initial loan disclosures.
Verify
You provide us with documentation of the information you submitted in your application. We’ll verify and approve your loan for closing.
Close
After signing the closing documents, we’ll coordinate the loan closing and fund your loan. It’s just that simple!
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A Pathway to Affordable Rural Housing
Our experienced loan experts at Supreme Mortgage will guide you through the USDA loan requirements, assisting you in understanding and meeting the necessary criteria for a successful USDA loan application.
What is a USDA Loan?
A USDA loan, also known as a USDA Rural Development Loan, is a mortgage program offered by the United States Department of Agriculture (USDA) to help individuals and families in designated rural and suburban areas achieve homeownership.
USDA loans provide affordable financing options with unique features, including:
- Location-Based Eligibility: USDA loans are available for properties in designated rural and suburban areas, outside major metropolitan regions.
- No Down Payment Requirement: Eligible borrowers can finance 100% of the home’s purchase price without needing a down payment.
- Competitive Interest Rates: USDA loans offer competitive interest rates that can result in lower monthly mortgage payments.
- Flexible Credit Requirements: USDA loans have more lenient credit requirements, making homeownership accessible for borrowers with less-than-perfect credit.
- Mortgage Insurance: USDA loans require mortgage insurance with lower premiums compared to other loan programs.
- Support for Home Improvement: USDA loans can provide funds for necessary home repairs or improvements through the USDA’s Home Improvement Loan and Grant program.
USDA Loan Programs
USDA offers three primary home loan programs to help individuals and families in rural areas achieve homeownership.
Loan Guarantees: Similar to FHA and VA-backed loans, the USDA guarantees mortgages issued by participating local lenders. This guarantee enables borrowers to secure low mortgage interest rates, even without a down payment. However, if you make a minimal or no down payment, you will be required to pay a mortgage insurance premium.
Direct Loans: These mortgages are issued directly by the USDA and are specifically designed for low- and very low-income applicants. Income thresholds vary by region, and with subsidies, interest rates can be as low as 1%. Direct loans provide an affordable financing option for those who may not qualify for traditional mortgages.
Home Improvement Loans and Grants: USDA also offers home improvement loans and grants to assist homeowners in repairing or upgrading their homes. These programs provide financial support for necessary renovations. Depending on the applicant’s qualifications, packages can include either a loan or an outright financial award. In some cases, a combination of both may be available, providing assistance of up to $27,500.
Eligibility Requirements
To be eligible for a USDA loan, borrowers must meet certain requirements.
Location: The property must be located in a designated rural or suburban area as determined by the USDA. The USDA provides an eligibility map to identify eligible areas.
Income Limits: USDA loans have income limits based on the borrower’s location and family size. These limits ensure that the program benefits those with moderate to low incomes.
Creditworthiness: While USDA loans have flexible credit requirements, borrowers must still demonstrate a satisfactory credit history. Lenders will review credit scores, payment history, and other factors to assess creditworthiness.
Occupancy: USDA loans are intended for primary residences, and borrowers must intend to live in the property as their primary residence.