USDA Mortgage Loans

The United States Department of Agriculture created a loan program to help lenders work with low and moderate income families living in rural areas, to “make homeownership a reality.”

USDA loans offer low interest rates and don’t require a down payment. They are meant for select borrowers who aren't wealthy and don’t qualify for a traditional mortgage.

Advantages

  • No down payment option
  • Cash reserves may not be required
  • Flexible guidelines
  • Seller can pay closing costs
  • Low fixed interest rates
  • No prepayment penalty
  • Can fold closing costs into loan
  • Can be used for new home purchase or refinance
  • Can be used to build a home

Disadvantages

  • Geographic restrictions (meant for rural buyers)
  • Mortgage insurance required
  • Income limits
  • Single family, owner occupied only
  • Can not be used for duplex homes Learn More

If you are looking to purchase or refinance a rural home, USDA loans may be an option. Call us at 443-398-0711 or click the button below for a free consultation.

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