Loan

USDA Loans

USDA Loans

For low-to-moderate income borrowers who have always dreamed of quiet country living, this USDA-backed home loan can help.

Benefits of a USDA loan

  • Some of the lowest mortgage interest rates available
  • No down payment for eligible applicants in designated rural areas
  • May help low-to-moderate income borrowers qualify
  • Flexible credit guidelines
  • Low monthly mortgage insurance payments
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What is a USDA loan?

One of the lesser-known mortgage assistance programs, USDA loans are issued through—you guessed it—the United States Department of Agriculture. The USDA believes that helping families in rural areas become homeowners creates strong communities and a better quality of life. Therefore, the USDA offers three main mortgage programs:

  • USDA direct loans: The USDA issues these loans for qualifying low-income borrowers with interest rates as low as 1%.
  • USDA loan guarantees: Like VA loans, these loans are issued by participating local lenders and backed by the USDA. This allows us to offer low-interest rates and minimal down payments.
  • USDA home improvement loans: These loans are given to qualified homeowners to make repairs or improvements to their homes.

With their competitive rates and minimal down payments, USDA loans are a great option for eligible borrowers to put down roots in rural areas.

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USDA Loans

For low-to-moderate income borrowers who have always dreamed of quiet country living, this USDA-backed home loan can help.

What is a USDA loan?

One of the lesser-known mortgage assistance programs, USDA loans are issued through—you guessed it—the United States Department of Agriculture. The USDA believes that helping families in rural areas become homeowners creates strong communities and a better quality of life. Therefore, the USDA offers three main mortgage programs:

  • USDA direct loans: The USDA issues these loans for qualifying low-income borrowers with interest rates as low as 1%.
  • USDA loan guarantees: Like VA loans, these loans are issued by participating local lenders and backed by the USDA. This allows us to offer low-interest rates and minimal down payments.
  • USDA home improvement loans: These loans are given to qualified homeowners to make repairs or improvements to their homes.

With their competitive rates and minimal down payments, USDA loans are a great option for eligible borrowers to put down roots in rural areas.

Benefits of a USDA loan

  • Some of the lowest mortgage interest rates available
  • No down payment for eligible applicants in designated rural areas
  • May help low-to-moderate income borrowers qualify
  • Flexible credit guidelines
  • Low monthly mortgage insurance payments

Is a USDA loan right for you?

A USDA loan is an excellent option for first-time buyers looking for a no down payment option who want to purchase rural property outside of major metro areas.

Eligibility for USDA loans depends on both the buyer and the property. First, the home must be in an eligible rural area. Typically, the USDA defines these designated areas as having a population of 35,000 or less. 

USDA loans are for families who demonstrate economic need, so your adjusted gross income can’t be more than 115% of the median income in the area. You also have to use the home as your primary residence. In other words, USDA loans aren’t available for investment properties, second homes, or vacation homes.

Put Down Roots in the PNW

If you’re ready to put down roots in a rural area, the USDA loan program can be an effective way to make your homeownership dreams come true. Get in touch with the team at Hixon to learn more about current rates, property eligibility, and the different USDA mortgage programs.

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Derek Meyer

VP of Mortgage Lending

NLMS: 1457587

541-280-5785Email Derek
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Brian Liebman

VP of Mortgage Lending, Producing Manager

NLMS: 249643

541-610-2275Email Brian