USDA Loans

The Great Depression was the catalyst for many of the agencies and programs we know today. Initial relief was aimed at helping farmers and other rural initiatives. With the Farm Act of 1937 through Act to the Consolidated Farmers Home Administration Act of 1961 to the restructuring of USDA in 1994, the United States Department of Agriculture has provided many programs to assist in rural development, including the USDA home loan program.

What is a USDA home loan?

The USDA, much like other government agencies, does not actually loan money. The loans are guaranteed by the USDA. Banks, credit unions, and direct lenders loan money to the home buyer but the loan is insured in case of default.

Lenders assume less risk, therefore they offer loans with zero money down and competitive interest rates.

Who is eligible?

Despite the name, you don’t have to be a farmer to be eligible for a USDA loan. There are two main factors for eligibility. First, there are income limits attached, it’s truly to support agriculture and the surrounding communities. JCL loan officers can look up the income limits in your area to determine if you qualify. Second, USDA loans are location based. The USDA updates their maps regularly to determine what areas are eligible. Generally any property outside of major metropolitan areas are eligible. But as more land is developed and turned into suburbs, or as areas grow along major highways, the USDA updates their maps to exclude the populated areas.

USDA Loan Details

• Purchase your home with as little as 0% down payment.
• 30-, 25-, 20- and 15-year terms are all available with fixed rates.
• 5-year adjustable rate mortgage available.
• Have a monthly guarantee fee similar to Private Mortgage Insurance.
• Pay your mortgage off at any time without pre-payment penalties.

**This company is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.