The USDA loan from United Funding is also known as the USDA Rural Development Guaranteed Housing Loan Program. Like the FHA, VA, and other government-backed loans, it's guaranteed by the U.S. Department of Agriculture. It was originally designed to provide a mortgage alternative to rural property buyers who had limited financing options. Today, as populations grow and suburbs expand, it's not just a loan for farmers and rural property owners. It's becoming a viable mortgage option for people who want to live away from cities and enjoy country living.

Down Payment & Closing Costs Assistance Programs

Buying a home may be more affordable than you think.

The USDA Loan Benefits

No down payment: The USDA loan comes with 100% financing. You don't need to make a down payment, which can often be a big obstacle for first-time homebuyers.

Very low interest rates: Because the loan is guaranteed, United Funding offers a lower standard interest rate that is not tied to your credit score or down payment.

Low monthly private mortgage insurance: As of 2020, the upfront mortgage insurance rate on a USDA loan is just 1%, with an annual fee of only 0.35%, the lowest number of virtually any mortgage financing program. The upfront fee can also be rolled into the loan, eliminating an out-of-pocket expense at closing.

Flexible credit guidelines: Borrowers with lower credit scores or less than perfect credit history can often meet the program's qualifying guidelines.

USDA loan restrictions and eligibility requirements

Eligible Geographic Areas: To get a USDA loan, the property you buy has to be in a USDA-designated rural area, but it's not all farmland. Almost 97% of the U.S. is eligible, which includes small towns and suburbs. The USDA MMortgage-eligiblearea requirement map will show you all the areas where you can use this loan.

Income limits: THE USDA loan was originally designed for low to moderate-income earners. The program's guidelines define income level as being up to 115% of the area's median income. In many parts of the country, this can be quite generous. For lower-income buyers, all of a household's income is considered during the application process, which helps increase eligibility. This can include income from a child or other family member living in the house but who isn't listed on the loan application.

Length of the loan: The United Funding USDA loan is a 30-year fixed-rate loan. One of the most common types of mortgage, with low and affordable monthly payments.