How do the USDA housing loans work? Is it the same as getting a mortgage, will my credit rating affect my ability to Get this type of loan?

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(0) | asked by: Peter | share | 3 months ago | Report

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A USDA loan is the same as getting a conventional mortgage, but it comes with some unique benefits! The key is that the property must first qualify for the product by being deemed "Rural" by the USDA. The benefits are great! First, you can receive 100% financing with 6% seller concessions! (truely no money out of pocket for the borrower) Second, The Monthly Mortgage Insurance Premium (MIP) is about 1/3 the cost of an FHA loan. (about $100 a month in savings). Hope this helps! @BryantTweets

(2) | by Bryant Grantham | 3 months ago | Report

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answer by Brent Elzinga | Visit My Website | Contact Me
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This is a specialty mortgage loan and credit rating is used in our qualifying process. The benefit of these loans is the very low amount of cash required, if any, and generally speaking (at this moment) Sellers are paying most closing costs so it can be a way to get into a home with little money.

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answer by Don S. Riggs | Visit My Website | Contact Me
answered questions: 1

USDA loans are very similar to any other mortgage. The area you are looking in must qualify for a USDA loan. Typically most large metropolitan areas are not part of the USDA program.

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