Saving enough for a down payment is an obstacle many people can’t overcome. But did you know there’s a government program that could help? The USDA Guaranteed Rural Housing Program gives borrowers with low to moderate incomes the opportunity to own homes in eligible areas by allowing them to take advantage of 100% financing. It’s affordable homeownership that helps America’s communities thrive.
Use the USDA Income and Property Eligibility Site to see if the property address is eligible. For more on the program and income qualifications please reach out to your First Class Mortgage Loan Officer.
Is a USDA loan right for you?
The USDA Mortgage is meant to spur homeownership in pre-designated rural and underdeveloped areas. Take advantage of a 0% down-payment with this program!
Check out what your monthly payment could be by using our USDA Mortgage Calculator…
Our mortgage calculators are for demonstration purposes only and may not reflect actual numbers for your specific mortgage. Contact us and we will walk you through the best possible mortgage scenario for your specific needs!
Principal & Interest (P&I)
$
Annual Guarantee Fee
$
Taxes & HOA
$
Homeowners Insurance
$
Purchase Price
Home Value
$
Down Payment
$
Current Mortgage Balance
$
Cash Out
$
Upfront Guarantee Fee
$
Total Loan Amount
New Loan Amount
$
Home Equity After Cash Out
$
Estimated Taxes & Insurance
Property taxes are generally estimated to be 1.2% of the home's value, but may vary based on your location. Annual homeowners insurance is roughly 0.35% of the home's value but can change based on insurer. Your loan specialist can help you determine property tax and insurance rates in your area.
Annual Guarantee Fee
The USDA Annual Fee is 0.35% of the loan amount and is paid to the USDA to compensate mortgage lenders should a mortgage go into default. This fee is paid at closing and borrowers typically choose to finance it into the loan. The USDA Annual Fee is lumped into your monthly payment and is paid for the life of the loan.
USDA Funding Fee / Upfront Guarantee Fee
The USDA Funding Fee or Upfront Guarantee Fee is paid to the USDA to help fund the program. The USDA Funding fee is paid at closing and typically financed into the loan. The USDA Funding Fee is 1.0% of the total loan amount.
Amount Financed
Purchase Price (-) Down Payment (+) Upfront Guarantee Fee
Estimated Payment
$ /mo
Loan amount
$
Down payment
$
Cash Out
$
Home Equity After Cashout
$
Interest rate
Loan term
Taxes & insurance included?
Property tax
Homeowner's insurance
$
Upfront guarantee fee
$
Annual guarantee fee rate
$
Annual guarantee fee
$ /mo
HOA dues
$
Payment Breakdown
Amortization
Principal vs. Interest
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: $$240,000 (the amount borrowed)
- Interest payments: $$297,554 (the cost of borrowing)
Benefits of a USDA loan
- 100% financing: That’s right! This program offers 100% financing for qualifying members.
- First time buyer friendly: USDA Rural Loans can be used by first-time buyers and repeat home buyers alike.
- No homeowner counseling required: Unlike some other mortgage programs, the USDA program doesn’t require a homeowner counseling course to qualify.
USDA loan eligibility requirements
- Ability to prove creditworthiness, typically with a credit score of at least 580
- Stable and dependable income
- A willingness to repay the mortgage – generally 12 months of no late payments or collections
- Adjusted household income is equal to or less than 115% of the area median income
- Property serves as the primary residence
- Property is located in a qualified rural area
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