USDA Loans (Rural Development)

Competitive Rates and Zero Down Payment USDA Loans

USDA loans are a lending option open to a broader range of borrowers than conventional mortgages. These government-backed loans help families and individuals purchase homes in certain rural and suburban areas with no down payment. USDA loans allow people with low or moderate income to secure home financing without a burdensome down payment or strict approval requirements. At Parkside Mortgage, we give each of our clients and prospective clients one-on-one attention to help them find loan options that lead to homeownership. If you are interested in financing a home in Louisville, Prospect, or surrounding Kentuckiana, contact us today to discuss USDA loans.

USDA Loan Basics

USDA is an acronym for the U.S. Department of Agriculture, a division of the federal government. The USDA participates in all types of rural programs and legislation, one of which are USDA mortgages. These loans are insured through the government, but they are fully funded through USDA-approved lenders like Parkside Mortgage. Because they are federally insured, USDA loans pose minimal risk to lenders, who in turn offer financing to more clients with low to moderate income.

The USDA created this mortgage solution to help more people purchase homes and to help develop rural areas. These loans must be used to purchase homes in certain suburban and rural areas, and clients must not exceed income limits set by the Department of Agriculture.

USDA Guaranteed Loan Specifics

While there are two types of USDA loans, we focus on USDA Guaranteed loans, which are the most popular financing option for rural development. These loans feature:

  • Income limits up to 115% of the median income
  • 30-year, fixed-rate terms
  • 100% financing, with zero down payment
  • Little or no out-of-pocket closing costs (these expenses can be included in the loan)

To get approval for a USDA loan:

  • Your debt-to-income ratio cannot exceed 41%.
  • You must document 12 months of good credit history without bad marks.
  • You must verify rent or mortgage payments during the past 12 months without late payments.
  • You will agree to live in your newly financed home as your primary residence.
  • You must be a U.S. citizen, U.S. non-citizen national or qualified alien.
  • You must use your funds toward a new or existing residential property, a new site and approved manufactured home, repairs or rehabilitation for existing homes, and certain other approved uses.

A World of Possibilities Awaits with USDA Loans

You can achieve the dream of home ownership even if you may not qualify for a conventional loan. At Parkside Mortgage, we do everything we can to create a simplified approval and closing process for you. We offer paperless processing, quick approval and closing, very competitive rates, and the one-on-one attention you deserve. If you are considering USDA loans for purchase in Louisville, Prospect, or Kentuckiana, contact us to see if you qualify.