USDA Home Loans

The government created the USDA rural development government loan program to encourage growth in our nation’s small and outlaying rural communities. If you are looking at a home in a suburban, small town, or on the edge of town a USDA home loan may be an excellent choice for you. USDA Rural Development loans encourage growth in what they define as small communities, which generally refers to a town with a population less than 20,000. Many small towns and suburban locations qualify as determined by USDA Rural Development  .

USDA loans are even more affordable because they require no down payment, and low monthly mortgage insurance, making payments even more affordable. Aside from a VA loan (for US Veterans only), it remains one of the last real no money down loan in existence.

USDA rural loan borrowers must meet certain qualifications:

  • Their home must be in an area the USDA designated area (have your loan officer look up the address to make sure)
  • The borrower must not exceed the income limit set for that area.
  • Your credit score must be at a minimum of 620, and you must demonstrate a willingness and ability to repay your loan. If your credit history shows little or no late payments in the last twelve months, this can serve as a demonstration of your willingness and ability to repay.
  • Verification of your income for the previous two years is also required. (If you are worried you may not be able to prove your ability to repay, call 360-676-9600 to speak to one of our loan counselors. We may still be able to help you.)

Do you meet the requirements? Not sure whether you meet the requirements, but want to find out? Call us or fill out our simple, 3-minute USDA home loan application. It’s fast, easy, and free.

USDA Rural Development Loan Program Benefits:

  • No Down Payment. There is no down payment required for a USDA home loan. The home’s full appraisal value, plus the one-time funding fee, can be paid for through the USDA Rural Development Loan.
    What that means for you: Except for your earnest money fee to purchase the home (typically between $500 – 1000), you do not have to pay anything out-of-pocket when borrowing with USDA home loan.
  • A Competitive Fixed Rate. USDA loans offer a competitive fixed rate. In fact, the USDA rural housing program does not offer adjustable rate mortgages of any kind.
    What that means for you: Your monthly mortgage payments will never increase with a USDA home loan (except for variations in property taxes).
  • No repeating fees. The only fee associated with the USDA Rural Development Loan is a small, one-time funding fee. This fee is financed into the loan, so you are not required to pay the fee out of pocket.
  • Low Monthly Mortgage Insurance. You pay lower monthly mortgage insurance with a USDA home loan than with traditional financing
    What that means for you: The USDA housing loan allows you to put more money towards paying off your mortgage each month, rather than towards fees.
  • Seller concessions. The USDA housing loan program allows the seller to pay 6% seller concessions. The seller can pay most if not all of the closing costs.
    What that means for you: You may not have to pay any closing costs out of your pocket, saving you even more money.


Financing Is Easy—And We’re Here to Help.

Our loan counselors are USDA rural loan experts. We’d love to show you what the USDA Rural Development Loan can do for you. Please answer our brief questions and we’ll get your process started.