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AmeriSave is proud to offer affordable USDA loans to rural communities
If you live in a rural area and meet certain income requirements, you may be eligible for a USDA home loan. USDA home loans are low-interest, 0%-down mortgage loans that are guaranteed by the US Department of Agriculture through its Rural Development Guaranteed Housing Loan program.
Because these loans are backed by the government, they offer more affordable terms with the goal of helping low- to moderate-income rural residents who cannot afford more expensive conventional home mortgage loans.
At AmeriSave, we offer competitively low USDA interest rates with no loan origination fees. See if you pre-qualify.
USDA Home Loans The Basics
Benefits of a USDA home loan
These loans offer significant advantages to those who qualify, including:
0% down—whether you’re purchasing or refinancing a home, your USDA loan offers 100 percent financing, so you don’t have to come up with thousands of dollars on top of making a monthly mortgage payment.
Low monthly insurance— monthly mortgage insurance on USDA loans is lower than average.
Flexible credit score requirements—these loans are meant to help borrowers who might not qualify for other home loans.
Requirements See if you qualify for a USDA mortgage loan
If you can check all the boxes below, you may qualify for a low interest rate on a USDA loan:
- Your home is a single-family residence
- You live in the home
- The home is in a rural area as defined by the USDA
- You have a low to moderate income that doesn’t exceed 115 percent of the median income in your area
- You have a steady income and enough savings/assets to make mortgage payments for at least 12 months
- You have a steady income and enough savings/assets to make mortgage payments for at least 12 months
Refinancing a USDA loan
The streamlined assist refinance program gives current USDA home loan borrowers with low or no equity the opportunity to refinance for more affordable payment terms.
AmeriSave can help you:
Determine your eligibility—Even if you have low equity in your home, you may still be eligible to refinance your USDA home loan as long as you have been making regular payments on your current mortgage for at least the last 12 months.
Find the best rate for you—Your AmeriSave rate to refinance your USDA mortgage loan is personal to you and determined by a range of factors, including your credit score, your income, and other criteria.
Quickly process your new loan—One key benefit of a streamlined USDA refinance loan is that typically you can close in less than 30 days with less paperwork, no home inspections, and no credit review.
Applying to refinance a USDA loan is quicker and simpler than the process to apply for other types of refinancing and requires fewer steps than your initial loan required.
USDA streamline refinancing requires less documentation— You provide us with less paperwork because USDA refinancing doesn’t require credit review, home appraisal, or home inspection for most borrowers.
Fees to refinance— The USDA does require refinancing borrowers to pay an upfront guarantee fee (1 percent of the loan amount) due at closing or rolled into the mortgage and an annual guarantee fee (.35 percent of the remaining principle balance) that is included in your monthly payment.
Credit scores— Although the USDA doesn’t require a full credit review, we will probably check your credit score, which may inform the interest rate we offer you.
Closing costs— As with any loan refinancing, closing costs apply. These may include lender fees, homeowner insurance premiums, and other costs.
Better rates and lower monthly payments—Refinancing can help lower your interest rate, and USDA loans typically have lower rates.
Improved loan terms— You can shorten the life of your loan or switch to a fixed-rate mortgage.
Fewer hoops to jump through— The refinancing process is relatively quick because you typically won’t be required to get a new home appraisal or property inspection, which saves time and money. You also won’t need a credit check or have your debt-to-income ratio calculated.
Quick closing— Because USDA streamline refinance loans require fewer steps and less documentation, the closing process is relatively quick and simple.
Become one of the millions of homeowners living in rural America with a USDA-backed home or refinance loan from AmeriSave. Whether you want to lower your monthly mortgage payment or buy a new home, you could save thousands on a USDA home loan.
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FAQs
Why would I want a USDA home loan?
These loans offer significant advantages to those who qualify, such as no down payment, low interest rates compared to conventional mortgage loans, low monthly insurance, and flexible credit score requirements.
Who backs rural resident mortgages?
The United States Department of Agriculture (USDA) guarantees these loans, which are then administered by private lenders—including AmeriSave.
Who are USDA-backed home loans for?
USDA mortgage loans are meant to help rural residents who otherwise could not afford to buy a home.
Do I qualify for a USDA mortgage loan?
To qualify, the home you wish to purchase must be your primary home and a single-family residence; and it must be in a rural area, as defined by the USDA (find out if your address is in an eligible area). In addition, your income may not exceed 115 percent of the median income in your area, and you have a steady income and enough savings/assets to make mortgage payments for at least 12 months. Finally, your credit score is around 640 or better, although this is flexible depending on other factors.
Why would I apply for a USDA loan and not an FHA, VA or other government-backed loan?
You may also be eligible for a home loan backed by the Federal Housing Authority or other government agency, such as if you or your spouse are a veteran. FHA loans have similar requirements as a USDA loan but do require a down payment. An AmeriSave loan specialist can help you review criteria and benefits of different types of government-backed loans to find the right loan for you.
Are all USDA loans the same? How can AmeriSave help me?
Just as with other mortgage loans, every lender has different criteria and has different loan and interest rate options. AmeriSave will help you find the best interest rate and customize a loan that meets your needs and qualifications.
Can I refinance my USDA home loan?
If your current loan is a USDA direct or guaranteed loan, you can refinance it.
What are the requirements to refinance a USDA mortgage loan?
Your current loan must be a USDA-guaranteed home loan and you must have had it for at least 12 months and be current on your payments. To refinance, the USDA requires that a new loan would have a financial benefit that lowers your monthly mortgage payment by at least $50. Your income must still be within the allowable limit for your area. However, if your property is located in a rural area that is no longer eligible for the program, it is still eligible for refinancing.
How does AmeriSave help with the USDA refinance application process?
An AmeriSave loan specialist can help you review your qualifications, including checking your credit score to help determine your low, customized rate. Your specialist will guide you in collecting necessary documentation, such as financial documents showing you meet income requirements.
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