USDA Loan

What are USDA loans?

USDA loans are designed to help low- and moderate-income individuals and families buy homes in rural areas. They are particularly well-suited for first-time homebuyers who have limited savings or who are unable to secure conventional financing.

Why choose a USDA loan

No down payment requirement: USDA loans offer 100% financing, meaning borrowers don’t have to make a down payment.
Low interest rates: USDA loans typically have lower interest rates compared to conventional or FHA loans, making them more affordable for borrowers.
Flexible credit requirements: USDA loans have more flexible credit requirements compared to conventional loans, making them accessible to a wider range of borrowers.
No pre-payment penalties: Borrowers are free to pay off their USDA loan early without incurring any penalties.
Supports rural areas: USDA loans support the development of rural communities by making it easier for residents to buy homes.

How USDA Loans work

Eligibility: To be eligible for a USDA loan, the property must be located in a designated rural area, and the borrower’s income must not exceed the USDA’s income limits.
Application: Borrowers must complete a loan application and provide documentation of their income, assets, and debts.
Loan Approval: After the loan application is submitted, the USDA will review the application and make a decision on loan approval.
Guarantee Fee: USDA loans require a one-time guarantee fee, which is a form of mortgage insurance that protects the lender in case of default.
Repayment: USDA loans have a fixed interest rate and a repayment term of 30 years. Borrowers make monthly payments to the lender, which go towards paying off both the principal and interest on the loan.

**Cornerstone First Mortgage, Inc. is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.

Interested in a USDA Loan?

Contact us! One of our mortgage specialists would be happy to answer all your questions and get you started with a great low rate today!

Let’s get you into your dream home

It’s simple to get started on your mortgage journey – whether you’re just looking to get pre-qualified or are ready to submit an application. Just click the button below or submit a contact form to speak with one of our mortgage experts.

We’re here to help!

USDA Loan

What are USDA loans?

Why choose a USDA loan

How USDA Loans work

Interested in a USDA Loan?

Let’s get you into your dream home

Contact Us

company

Resources

FOLLOW US

Employee login