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USDA Mortgages 

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When buying a home, it's important to choose the right loan for your needs. Your loan will determine how much you pay for your home over time, how long it takes to pay off your loan, and even how much you pay each month. 

Is a USDA loan in Colorado the right choice for you? Make sure you fully understand your options and the loan's appearance before you take the leap. 

 

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What is a USDA Loan?

A USDA home loan is a specific type of mortgage intended for lower to moderate income home buyers. It is geared toward homes in rural areas, including many of the areas in Colorado. With a USDA loan, you can often purchase a home with no down payment, putting home ownership within reach for many buyers. 

How Does a USDA Loan Work?

A USDA loan is backed by the US Department of Agriculture, which makes it more desirable for many banks. Instead of simply relying on buyers to make payments on time, banks can trust that the Department of Agriculture will step in if needed. That means buyers can often secure lower interest rates or worry less about how much they can put down on the house.  USDA loans may also be available to buyers who would be turned down for a traditional mortgage based on credit scores or other factors. 

You will need an appraisal to verify that the home is:

  • Valued reasonably based on the purchase price and the amount of the loan
  • Meets USDA standards
  • Is liveable
  • Has no significant damage that will make the home uninhabitable in the near future
If you have a USDA loan, you will need to pay an annual guarantee fee, a program similar to mortgage insurance. These fees are usually based on a percentage of the loan's value. They help fund the USDA loan program and provide insurance against missed payments or defaulting on the loan, which helps protect both the lender and the USDA.

What are the benefits of a USDA loan?

Selecting a USDA loan for your home offers a number of potential benefits.

  • There is no down payment requirement, so you may not have to worry about saving up before applying for the loan.
  • You can often qualify for a USDA loan with a lower credit score than individuals applying for a standard loan.
  • You often receive lower interest rates on a USDA loan than a traditional mortgage.

Many homebuyers find that a USDA loan is the best choice for their needs if they meet the requirements.

How to Qualify for a USDA Loan

To qualify for a USDA loan, you must:

  • Be a resident of the United States or a noncitizen national
  • Live in a rural area covered by the USDA's eligibility map
  • Have no more than 115% of the median income for your area
  • Have a low debt-to-income ratio
  • Show stable income that indicates you can afford to keep up with mortgage payments
  • Have a reasonable credit score

You may not qualify for a USDA loan if you do not meet those criteria. However, always talk to your lender to learn whether you will qualify and what factors could prevent you from obtaining your loan.

If you live in a rural area of Colorado and need a loan to purchase a home, a USDA loan could be the right choice for your needs. Contact us to loan more about these loans and how they can impact your ability to own your own home.

 

Find Out Which Home Loan is Right for You

Hear why Colorado homeowners talk to US Mortgages first!

My husband and I are extremely pleased with our experience with US Mortgage and especially the assistance we received from Zachary Gloyd.

5-star
Mary L.

Heidi was - #1 Professional, she answered every question I had and when we were done, she asked if there was anything else I could think of. #2 she followed several times during the process to see if I needed anything or if anything else had come up. #3 she would randomly check in to make sure everything was in order and help me with any documents that they needed to close.

It was just an awesome experience!!

5-star
Adam C

Heidi and her team were terrific to work with. The communication was exceptional. Every step of the way went exactly as she said it would. There was no hard sell, Heidi laid out what they could do for us and our mortgage options in a straightforward manor. I would not hesitate to use the company again and will recommend her to anyone needing a mortgage.

5-star
Thad P.

I had a great experience with US Mortgages. I got a great rate and considering the difficult times we are in the process was pain free.

5-star
Will S.

David McKune and Debbie Johnson did a wonderful job with my loan. David may have played in instrumental part in my actually getting the bid on my house accepted in the first place.

5-star
Sonia L.

We worked with Heidi to refinance our home. She was easy to work with, responded to all our questions in a timely manner, and kept us well informed during the process. Best of all there were no surprises.

5-star
Paul N.

I have had the pleasure of working with Marcy 3 times over the past 6 years to address my mortgage needs, and I couldn't be more impressed with her expertise and professionalism. Thanks to her hard work and dedication I was able to secure exactly what I needed to achieve my mortgage goals. I highly recommend Marcy to anyone seeking outstanding service and results!

5-star
Gabriele G.

The entire process from beginning to end was smooth. The team is very knowledgeable, professional and efficient. Thank you US Mortgages and team.

5-star
Bernice G.

I queried 4 lenders before deciding on US Mortgages for my refinance. The process from initial contact to funding of my new loan was completed in 2 1/2 weeks!

5-star
Carol H.

US Mortgages receives a full five stars from our family! David McKune and Debbie Johnson are rock stars in the Mortgage world. They both provided exemplary customer service.

5-star
Kidron B.

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