Why Choose A USDA Loan For Your Home Purchase Or Refinance
Up To 100% Financing
Other loans require you to have a down payment or equity in your home. USDA loans don’t require a down payment. This is perfect for those who don’t want to put money down or utilize their home’s equity.
Lower Interest Rates
USDA home loans typically have lower rates than other loan programs. This makes your monthly payment more affordable and saves you money.
Flexible Credit Guidelines
You don’t need perfect credit for a USDA home loan. USDA loans have lower credit score requirements and shorter waiting periods if you had a bankruptcy or foreclosure in the past.
What Other Homeowners Are Saying
Cottonwood Heights USDA Home Loan FAQs
Find answers to your USDA loan frequently asked questions.
What are the benefits of a USDA loan?
USDA home loans offer a number of benefits over traditional mortgage products. For starters, USDA loans are only available on properties located outside metropolitan areas. These areas are generally more rural and makes them one of the most accessible loan products on the market. Additionally, USDA loans do not require a down payment, which can make them an attractive option for first-time homebuyers or those with limited savings. Finally, USDA loans typically have lower interest rates than traditional mortgages and less stringent credit requirements.
How do I qualify for a USDA home loan?
To qualify for a USDA home loan, you’ll need to meet the service requirements of the Department of Agriculture.
What FICO Score Is Needed For A USDA Loan?
The minimum FICO score needed for a USDA loan is 620 for most lenders. Some lenders will go lower to a 580 score or even as low as a 560 score. The interest rate you receive will largely depend on your credit score. Having a higher credit score will improve your mortgage rate and save you money each month on your payment.
What is the process of getting a USDA Loan?
The process of getting a USDA loan starts with getting preapproved from a loan officer. You’ll need to provide income documentation and possibly bank statements. The lender will also need to run a credit check.
Once you’ve been preapproved for your USDA home loan, it normally takes 45 days or less to close once you have a home under contract.
Do You Need A Down Payment For A USDA Home Loan?
USDA home loans do not require a down payment in most cases. One of the biggest advantages of using a USDA loan is being able to get 100% financing.
What Are The USDA Loan Limits?
USDA loan limits depending on the area the home is located in. The USDA loan limit can be found by using the USDA’s lookup tool.
How To Choose A Mortgage Lender For Your USDA Loan in Cottonwood Heights
When looking for a lender to help with your USDA loan, it’s important to find someone who is local and specializes in USDA home loans. Compare your options by finding a loan officer that:
- Demonstrates knowledge of the USDA loan process and guidelines
- Has a network of other real estate professionals familiar with USDA loans
- Is familiar with USDA-required inspections for the area
- Knows what USDA resources are available to find the latest information
- Can show exceptional reviews and testimonials
Many mortgage lenders claim to specialize in USDA loans. However, they typically hire loan officers with little to no experience. The lender doesn’t underwrite the loans themselves, have extended closing times up to 45 days, make you work with a team instead of a single person and don’t respond to your inquiries during the process. Plus, you typically end up with a higher interest rate.
Choosing the right lender in Cottonwood Heights, Utah for your USDA loan could save you thousands of dollars and ensure a positive home buying or refinance experience.