Tired of paying rent but struggling to save for a down payment? A government-backed USDA loan from Directions Home Loan can help you secure an affordable mortgage with 100% financing.
Does the path to homeownership feel out of reach?
Do you dream of owning your own home? A place with a yard for your kids and the dog to play, space for your family to grow, or simply a quiet retreat from the hustle of the city?
Yet, as that dream takes shape in your mind, reality sets in. You watch home prices go up, while your rent check gets cashed every month, making it impossible to get ahead.
You start to spiral and think:
- “I’ll never save enough for a 20% down payment. It feels like an impossible goal.”
- “My credit score isn’t perfect, so I probably won’t be approved for a good mortgage or payment assistance.”
- “The whole mortgage process is too confusing and full of jargon I don’t understand.”
It’s easy to feel discouraged. Fortunately, there’s a family housing direct home loan that can help you overcome the hurdles to homeownership.
The USDA loan: Your $0 down path to your dream home.
A USDA home loan is a government-backed mortgage that aims to help families and individuals in suburban and rural areas purchase a primary residence. It’s one of the best loan options available for qualified borrowers because it directly solves the biggest challenges of buying a home. This program, overseen by the Department of Agriculture, is part of the broader USDA rural development initiative.
Here’s a breakdown of what you’ll get with a USDA home loan:
- $0 down payment: That’s right — 100% financing is available. Keep your savings for moving costs, new furniture, or a healthy emergency fund.
- Lower monthly payments: USDA guaranteed loans often have competitive interest rates and lower monthly mortgage insurance fees compared to other loan programs.
- Flexible credit guidelines: Low-income borrowers don’t need a perfect credit history to qualify for their dream home. This program is intended to expand access to homeownership.
See if you qualify in under 60 seconds.
The USDA designed this program, including its single-family housing and housing guaranteed loan program, to be accessible. These loan funds are specifically allocated to help households purchase homes. While there are a few other requirements, qualification boils down to three main factors:
Step 01.
Property Location
The home you want to buy must be in a USDA-eligible rural area or suburban area. But don’t worry! Ninety-seven percent of the US landmass is eligible, including many growing towns and communities just outside major cities and the dense metro area.
Step 02.
Income Limits
To qualify, your total household income must be at or below 115% of the area’s median income. This amount varies by county and household size, but we can help you figure this out quickly and easily.
Step 03.
Credit Score
While the guidelines are flexible, qualified borrowers generally need a credit score of 620 or higher. We’ve successfully helped people with a wide range of credit histories secure a loan and achieve homeownership.
Your local USDA loan experts for a simple, stress-free journey to homeownership.
Getting a mortgage is a big deal, and choosing the right partner is critical. Unlike a faceless national lender, we’re your neighbors, dedicated to helping you find your new home.
- True local expertise: With 17+ years of experience, we know the local markets inside and out. We can help you navigate the real estate landscape, guiding you to eligible communities you’ll love.
- A painless process: The USDA home loan programs and other government loans can seem complex, but we make them easy. Our expert team has streamlined the USDA loan process, handling the details and paperwork so you can focus on finding the perfect home. As an approved lender and participating lender, we ensure a smooth path to your loan. Just ask our clients!
- Personalized guidance: We take the time to listen, answer all your questions, and find the right solution for your family. We’re here to provide supportive, knowledgeable guidance from your first call to the closing table, leaving you confident that you have the money and funds you need.
Blogs and insights
Stay informed with our latest articles and insights on USDA loans and homeownership.
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Frequently Asked Questions
A $0 down loan seems too good to be true. What's the catch?
USDA loans have a small, government-required upfront funding fee that’s paid once (and can often be rolled into the total loan amount) as well as a small annual fee paid monthly. This annual fee is almost always lower than the expensive private mortgage insurance (PMI) on other low-down-payment loans, which can save low-income individuals a significant amount of money each month. This makes the total loan more manageable.
What if my town isn't considered rural?
The USDA’s definition of “rural” includes many suburban communities and towns with populations up to 35,000 that qualify. The best way to know for sure is to check the official map or simply ask our team; we can check any property address for you in seconds.
Can I use a USDA loan to build a new house?
Yes! In many cases, a special type of USDA loan, called a single-close construction-to-permanent loan, allows you to purchase the land and build your new home with one loan and one closing. It’s a fantastic way to build your dream home with $0 down. This falls under the single-family housing guaranteed umbrella.
How long does the USDA loan process take?
Because the loan has to be approved by both the lender and the USDA, it can sometimes take 30 to 60 days longer than conventional loans or single-family housing direct loans.
Are there any other costs associated with a USDA loan besides the loan amount?
While USDA loans are known for their $0 down payment benefit, there are typically closing costs involved, just like with most mortgages. These can include appraisal fees, title insurance, and attorney fees. However, in some cases, these closing costs can be rolled into the total loan amount or covered by seller concessions, making the upfront out-of-pocket expense minimal for home buyers.
Customer Testimonials
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Let our team of dedicated VA loan specialists show you how simple the path to your new home can be. Get started today with no obligation and no pressure.
