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Mortgage Loans

Affordable Loans for Buyers in Rural Areas

Government-insured home loans are popular with many home buyers.

Even if your clients know about VA and FHA loans, a USDA home loan might not be on their radar - or yours. These loans - insured by the U.S. Department of Agriculture - have given countless families the key to home ownership.

What can buyers expect from this program? 

  • 100% financing on properties purchased in eligible rural areas
  • Approval with a minimum credit score of 640
  • Debt-to-income ratios up to 41% are allowed 
  • Fixed-rate loans
  • Requires an upfront guarantee fee of 1% that's financed into the loan and an annual fee of .35% that's included in the monthly payment 
  • Gift funds allowed (we’ll verify the source of donor funds)
  • Eligible property types include single-family homes, condos, townhouses, and modular homes

Despite the potential benefits of this loan, some buyers don’t investigate whether USDA can provide financing for their home purchase. If you’re wondering why, my opinion is that it’s one of the more misunderstood home loan programs available.

The truth is, many buyers assume a property they’re eyeing isn’t eligible.

But what they might not know - and what you can share with them - is that applying for a USDA home loan doesn’t necessarily mean buying a home far from a metro area. In reality, many neighborhoods within a short drive of urban areas qualify. As long as a property is in a designated USDA-eligible area, your buyers have the green light to use this program. So if there’s a house or a new development on the outskirts of the city, check with me to see if this area is USDA-approved.

Cherry Creek Mortgage strives to be a reliable partner, offering guidance to you and your clients. We’re better together, so let’s join forces and help homebuyers cross the finish line with an affordable product.