USDA

USDA mortgages

USDA mortgages (officially known as USDA Rural Development home loans) are government-backed mortgages from the U.S. Department of Agriculture’s Rural Development program. They’re designed to make homeownership more accessible in eligible rural and suburban areas by offering affordable financing, especially for low- to moderate-income households. These loans promote stable communities outside major urban centers.

Reasons to choose a USDA mortgage

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30-year USDA mortgage guidelines

To qualify for a 30-year USDA mortgage, you will need:

Must occupy as your primary residence
No stated minimum credit score, but 620 or above works best
Max DTI of 41% *
Zero Down Payment (100% Financing)
Low mortgage insurance premiums

No stated maximum loan amount.  Limit is contingent upon income limit and credit profile.  

What are the current 30-year USDA mortgage rates?

This chart is the daily national average for USDA loans.  Your actual rates could be better or worse depending on factors like your financial profile, the economy and local housing market trends, so stay informed as you plan your home purchase. Contact your Scout Advisors loan officer for your custom tailored rate quote.  

FHA Loan Mortgage Rates

Data source: OBMMI

Apply for a USDA mortgage

41% is the standard DTI, but can go up to 46% with compensating factors (680+ credit, 3 months PITI reserves and 2-years stable employment.

There is an upfront fee (around 1%) and an annual fee (currently .35%), paid monthly. For reference the annual mortgage insurance premiums for FHA loans are .55%

USDA defines eligible rural areas (some suburban and small towns also qualify). Check eligibility using the official USDA Map at: eligibility.sc.egov.usda.gov/eligibility

Single-family homes, townhomes, condos, and manufactured homes.

Yes. Household income cannot exceed 115% of the median income for the area and household size. Check income limits here: https://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state

Have additional questions?

We’re here to help. Let’s talk.

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply. Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact Rate for current rates. Restrictions apply.
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