USDA Rural Housing Loan
A Utah USDA Rural Housing loan is a mortgage loan that is guaranteed/insured by the U.S. Department of Agriculture and available for qualified individuals who are purchasing or refinancing their Utah home loan in an area that is not considered a major metropolitan area by USDA.
Great for First-Time Home Buyers
100% Financing (including Closing Costs)
No Down Payment Requirements
No Pre-Payment Penalties
Low Mortgage Rates
Benefits of a USDA Rural Housing Loan
- 100% Financing - you can buy a home with no money down and even finance your closing costs
- You can refinance your home up to 100% of the value of your home
- Low fixed rate mortgage options
- Easier to qualify for because the government insures the loan so that there is less risk to the lender
- They can be used for existing homes, foreclosures, or new construction
- Simple loan process.
- No loan limits, no acreage limit
- No prepayment penalty
- You can use the loan to repair or add on to your home
- Flexible credit requirements
Who is Eligible for a USDA Loan?
Generally, these loans are available to anyone who meets minimum credit guidelines and local area household income requirements and is purchasing a home or refinancing their home in an area that is not considered a major metropolitan area by USDA.
Misconceptions of Utah Rural Housing Loans
- They are just for farmers - This just isn't the case, it's not "just for farmers," millions of people already qualify.
- FHA or Conventional Loans are better - In fact, USDA Loans often offer better terms than an FHA or conventional loans.
- They aren't flexible - Actually, they can be used to buy a new home or refinance to a lower rate.
- Only certain people can qualify - Anyone who meets the income and credit guidelines can qualify.
- They are only for rural areas - Actually, they are available in many areas that most people would not consider rural. For example, small communities just outside of metropolitan areas.
- They are harder to get than FHA or Conventional Loans - This just isn't true, in many cases, they are actually easier to get because the loans are guaranteed by the government.