USDA RURAL DEVELOPMENT LOAN

• Are you looking to purchase a rural home with no down payment? 
• Have you heard all the buzz about USDA Loans and want to find out more?

USDA rural development loans have helped thousands of people in MN and WI buy homes with no down payment than just about any other mortgage loan program. These loans are super popular throughout the southern Minnesota and Wisconsin area outside of bigger cities, like Rochester and La Crosse. 

USDA LOANS

Are easier to qualify for because they are guaranteed by the federal Government. This means lenders are more willing to approve more people.

Have no down payment - The lack of a down payment is the biggest hurdle stopping most people from buying a house. With no down payment required... No reason why you can't buy a home today.

Allow less qualified people to buy a home - You don't have to have perfect credit to qualify (but you can't have bad credit either)

Are more affordable because they offer lower interest rates than other loans, and they have cheap mortgage insurance compared to other loans - making the home more affordable to you.

As a official USDA loan lender in MN, WI, IS, ND, and SD, we can offer some of the lowest USDA mortgage rates around. We are very experienced USDA mortgage professionals that will guide you in the right direction, and keep you informed of your loan throughout the process. 

You don't need to go to a USDA Office - While those people may be nice people, they only know, offer, and understand USDA loans. If you don't qualify for a USDA loan. They can't help you further. You'd have to start all over again with a different lender. Save yourself the trouble. Let us analyze your situation from the initial application, and offer the most appropriate loan for you, including the USDA loan if your qualify.

This program is, in my humble opinion the best mortgage available to help many areas increase sales, over come the negative effects of the housing market the past few years, and truly help buyers and sellers. 

USDA Loan highlights:

• No down payment
• Roll in closing costs
• Very low PMI (private mortgage insurance) costs
• It is NOT just for super "rural" areas. USDA definition of rural, and what most of us consider rural, may be two different things.
• All homes, condos and townhomes qualify if there are in a "eligible area".
• 620 credit score or higher
• Properties that produce income (farm, duplex, business on property) do not qualify

Get Approved for a USDA Home Loan in 3 simple steps

1. Do a  USDA INCOME Eligibility Check
2. Do a USDA PROPERTY Eligibility Check
3. Apply Online or call (651) 552-3681

 

USDA loans still have Closing Costs

It is nearly impossible to buy a home with no money.

All mortgage loans have closing costs; appraisal, credit report, lender fees, title insurance, state deed taxes, first years home home insurance, and even pro-rated property taxes. These have to be paid by someone, and that someone is always you.

You usually also need to write an earnest money check of 'good faith' money to the seller up-front when you make an offer, and of course doing a home inspection is always a smart move.

The good news is there are some tools we can use to minimize your out of pocket closing cost requirement. This is done by rolling the closing costs into your loan, and there are two ways to do that:

Seller paid closing costs: This 'sounds' like the seller will pay them, but really you are just increasing the purchase price to cover the costs.  For example, assume closing costs are $6,000, and you are buying a $200,000 home.  Your offer would actually then be written that your are buying the house for $206,000 - and having the seller pay $6,000 on your behalf.

Lender credits: This is where the lender will pay for some, up to all of your closing costs for you. Again, sounds great, but it isn't free. The lender will increase the interest rate on your loan to collect the costs over time, versus you paying it up-front today.