USDA Loans

USDA Rural Development (United States Department of Agriculture) loans are 30 year fixed purchase loans that are government insured to 100%. USDA loans have specific guidelines on loan size, income, location, and credit. An individual or family may borrow up to 100% of the appraised value of the home eliminating down payment. In some cases down payment funds can be an issue with low-income people, so depending upon the location of the home, USDA can serve as the best option.

In order to qualify:

1. Adjusted annual household income cannot exceed the moderate income limit established by the area.
2. Credit history that indicates reasonable willingness to meet obligations as they become due, have repayment ability based on piti ratios divided by gross monthly income equal to or less than 29% with total debt ratio equal to or less than 41%.
3. Subject home must be structurally sound, functionally adequate, and in good repair.
4. Home must be located in rural area and meet population requirements.
5. Borrower must personally occupy.
6. Pay a one-time 2% fee payable to the lender. (Can be wrapped up in the loan)

USDA allows refinanced loans as long as the current loan is also USDA. A .5% one-time fee is charged for these transactions.

Ask your Infinity Financial Group representative to see if you and the house you have picked out qualify for USDA today!