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Apply now for a USDA loan

Few home buyers have heard of the USDA loan program. And those who have may assume USDA loans are only for farms or homes that are too far removed from civilization.

On the contrary, USDA mortgages are for regular homes in small towns and suburbs, and for people with moderate income.

Check your eligibility with a USDA-approved lender. You may be able to become a homeowner sooner than you thought possible.

What does USDA guarantee mean?

A USDA guaranteed loan means the U.S. Department of Agriculture will insure your lender against financial losses if you default on the loan. This insurance — funded in part by the mortgage insurance premiums borrowers pay — helps the lender offer more competitive rates to borrowers.

How can I get out of a USDA loan?

You’d need to pay off the loan or refinance it to a non-USDA mortgage. Refinancing into a conventional loan lets homeowners stop paying mortgage insurance premiums if they own at least 20% of the home’s value as equity.

What credit score do I need for a USDA loan?

In most cases you need a FICO score of 640 or higher to get USDA loan approval. However, some lenders can make exceptions, especially if you have a low debt-to-income ratio (DTI). Be sure to check your credit report before applying so you can dispute inaccurate credit data which can pull down your score.