If you’re looking for a USDA home loan, we’re here to help!
Gulf Coast Bank Home Loans offers competitive interest rates on USDA mortgage loans in areas we serve, where USDA financing is available, including areas around metro New Orleans & Baton Rouge as well as Tennessee, Florida & Texas.
USDA Loan Overview
USDA home loans were created by the U.S. Department of Agriculture to encourage home ownership in rural areas. In fact, you might be surprised to learn how much of the Gulf South is considered “rural” by the standards of this important lending option!
USDA loans are sometimes referred to as “RD” (Rural Development) since they are designed for properties in rural areas.
A big draw of the USDA program is the 0% down payment option. This is the only zero down payment loan program available for borrowers who have not served in the military.
The USDA offers flexible terms for fixed rate mortgages only. Adjustable rate mortgages (ARMs) are not available with the USDA loan program.
What Are the Benefits of a USDA Loan?
USDA allows for expanded guidelines and lower down payments than you can get with a conventional or FHA loan.
- Closing costs may be rolled into the loan.
- 0% financing - a down payment is not required. Eligibility requirements apply
- USDA upfront and monthly loan fees are lower than FHA loan fees. Although conventional loans do not require an upfront fee, USDA monthly fees are usually lower than the monthly mortgage insurance required on conventional loans.
- Interest rates on USDA loans are typically lower than conventional mortgage rates.
USDA Loan Eligibility Checklist
Here are a few things to be aware of as part of the USDA program:
Is the property eligible?
- In order to qualify for a USDA loan, your property must be in an eligible area. Search for your property on the map to see if it is located in an approved area.
- The home must be used as your primary residence, investment property and second homes are not eligible.
- The property may not be an income-producing farm.
- Street, road, or driveway must provide access to the home.
- Adequate utilities, water, and a wastewater disposal system must service the home.
- The home and its foundation must be structurally sound.
Are you eligible?
- Your household income cannot exceed the limit set by the U.S. Department of Agriculture. Your specific income limit is determined by the location of the home and the number of people who will live in the home. Complete this income eligibility questionnaire to see if your income qualifies.
- Your debt to income ratio must meet USDA requirements.
If you have any question about the eligibility requirements for you or your property, find a mortgage loan officer near you to request a free consultation today.
Getting Started with My USDA Loan
Determining USDA eligibility can be a difficult process, so we recommend letting one of our expert mortgage loan officers guide you through the process.
Purchasing a Home with a USDA Loan
If you are in the market to buy a home and you are considering a USDA Loan as one of your lending options, getting started is easy:
- Schedule a phone call or meeting with one of our mortgage loan officers who will review your income & credit as part of our prequalification application process
- Once we have reviewed your information and it is determined that you meet USDA mortgage loan requirements, you will receive a pre-qualification with your maximum home purchase price.
- You will also receive USDA home loan scenarios with information on estimated monthly mortgage payments and cash required at the closing of your home loan. If you need assistance with closing costs from the seller, this is a good time to discuss those options with your real estate agent.
Refinancing Your USDA Home Loan
It is possible to refinance your home with the USDA. However, it is important to note that only a current USDA loan may be refinanced to a new USDA loan.
Also, please note that at this time, cash-out refinances are not available through USDA.
If you are seeking a cash-out refinance, please contact a mortgage loan officer at a branch near you to discuss other lending options which may be available.
Do you have any questions?
Gulf Coast Bank Home Loans has branches in metro New Orleans and Baton Rouge as well as Loan Production Offices in Tennessee, Florida & Texas.
If you are ready to get started, apply today!