USDA Home Loans

Every borrower’s financial situation is unique. That’s why here at Carrington, we offer a USDA loan option to those looking for a full financing option with no money down, and possibly little to no closing costs needed.

WHAT IS A USDA LOAN?

The United States Department of Agriculture backs USDA loans and offers a zero-down-payment mortgage option for a homebuyer in eligible rural areas.

USDA loans are issued by partner lenders like Carrington to help get qualified borrowers with incomes below a certain limit, qualified in these identified areas.

A USDA loan is a government-backed loan based mainly on location and income.

• Minimum 550 FICO.
• No down payment.
• No cash reserve requirements.
• Appraisal required. - 100% financing available on the appraised home value.
• Closings Costs required. -The seller can pay closing costs up to a certain amount outlined by USDA.
• Manufactured homes may be eligible. -Typically, the home needs to be permanent or anchored and permitted.
• Primary residences only.

Tip: Locations of eligibility are identified by the United States Department of Agriculture.

Purchasing Your First Home

Purchasing a first home is an exciting milestone in any person's life. However, the process can be intimidating. Here at Carrington, we do not want it to be. That is why we’re here to help educate and assist you along the way. If you need assistance, please contact our Homeownership Concierge at any time.

How Much Can I Afford?

“What can I afford?” This is a common question. Many factors determine a reasonable mortgage payment, including annual income, existing debt payments, and down payment (if any), as well as additional costs like homeowners’ insurance and property tax.

Carrington Mortgage Services provides a handy Mortgage Payment Calculator to help homebuyers find a monthly payment that’s comfortable for them.

Getting Preapproved

The first step toward securing your loan is getting preapproved. A pre-approval will assure a seller that you are prepared and have walked through the finer details with the mortgage professional vs a prequalification. The approval process is a comprehensive analysis to determine your credit ability. Preapproval

Should I use a Real Estate Agent?

When getting a USDA Loan, finding a real estate agent with experience and knowledge of a USDA loan is essential. With the Carrington family of companies, you have full access to a professional realtor through Vylla.

What is a USDA single-family guaranteed home loan?

The USDA Loan is a mortgage option available to qualified rural homebuyers. USDA loans are issued by USDA-approved lenders and are guaranteed by the U.S. Department of Agriculture (USDA).

What is the USDA loan guarantee?

When you hear that the USDA loan is guaranteed, it means the USDA insures a portion of each loan if the borrower defaults on their home loan. This backing, or guarantee, gives lenders more confidence in homebuyers and the ability to extend favorable rates and terms.

Are only first-time homebuyers eligible?

No. First-time homebuyers and repeat homebuyers alike may use the USDA loan.

What is the maximum amount that I can borrow?

There are no maximum loan amount restrictions on USDA loans. An individual’s maximum loan amount is based on their debts, income and ability to repay.