USDA Loans

USDA Loans: Rural Mortgages with Great Perks

When it comes to home financing, finding great benefits without breaking the bank can be a difficult proposition. USDA loans are amazing home financing solutions for clients interested in living in certain suburban and rural areas in Plano, McKinney, and Frisco, Texas. USDA loans are a type of nonconventional loan that is insured through the federal government, which means they have more flexible approval requirements than some other privately insured loans. If you’re interested in learning more about home financing, our professionals have more than 20 years’ experience to rely upon. Contact Nortex Mortgage with questions or to schedule a consultation about your goals as a homeowner.

Nonconventional Solutions for Rural Homebuyers

USDA loans are a type of nonconventional loan. Nonconventional loans are insured, in part, through various departments of the federal government. These differ from conventional loans, which are fully funded and insured through private lenders. Other common types of government-backed loans include VA loans and FHA loans, each of which are uniquely designed for different types of borrowers.

USDA Loan Basics

USDA loans are backed through the U.S. Department of Agriculture. The USDA developed these loans through the Rural Development program, which is an effort to encourage homebuyers to populate and develop non-urban areas. The USDA designates which areas and properties are eligible for USDA loans and sets income limits for borrowers. While they are backed through the federal government, they are fully funded through approved lenders. Because they are insured through the USDA program, these loans are less of a risk to lenders, which means they have less stringent approval requirements and some amazing benefits, including:

  • No required down payment
  • Fixed interest rate with 30-year terms
  • Minimal private mortgage insurance (PMI)
  • No maximum purchase limits

USDA Loan Property and Borrower Requirements

The USDA has a few types of loans and grants, but we will focus on the USDA Single Family Housing Guaranteed Loan Program. You can use funds from this loan program to purchase property and land or to renovate or improve an existing property. You can also use these loans to prepare a site for construction, purchase essential household equipment like heating and cooling systems, or even purchase energy efficient measures. To be eligible for this program, among other requirements, you must:

  • Have a low or moderate income as defined by the USDA depending on where you plan to purchase (our team can easily determine if you meet this requirement)
  • Plan to occupy your USDA loan home as your main residence
  • Be a U.S. Citizen, national or Qualified Alien
  • Purchase a home that passes an inspection and is declared adequate, modest, safe, and sanitary

Start the Journey to Homeownership with USDA

If you think USDA loans sound like they may be a good option for your family, contact Nortex Mortgage today. Our qualified mortgage professionals can give you the answers you need. We can quickly determine if you’re eligible for a USDA loan and show you areas that are eligible for financing. We have more than two decades of experience helping clients in Plano, McKinney, and Frisco, Texas, and we’d love to talk to you.