USDA Loans

Unlock the door to homeownership with our USDA Loans.

USDA Loans

USDA loans are government-backed mortgages designed for low-to-moderate income borrowers looking to purchase homes in eligible rural and suburban areas with no down payment required. They offer competitive interest rates and flexible credit requirements, making them an excellent option for buyers who may not qualify for conventional financing.

Down Payment Requirements

One of the biggest advantages of a USDA loan is the zero down payment requirement. Borrowers can finance 100% of the home’s purchase price, making it an affordable path to homeownership for those with limited savings.

Borrowers must meet income eligibility guidelines based on household size and property location. Click the button below to check if you qualify based on your income and desired home location.

Loan Terms and Fixed Vs. ARMs

USDA loans are primarily offered as 30-year Fixed Rate Mortgages (FRM), providing borrowers with stable and predictable monthly payments. Adjustable-Rate Mortgages (ARMs) are not typically available under the USDA program.

Fixed Rate Mortgages

Available in 30-, 25-, 20-, 15- and 10-Year fixed rate terms. Fixed Rate mortgages are considered a safer option over ARM loan because their future payments are stable and predictable.

ARMs

Which are typically offered in 30 year terms, have a short, initial Fixed period with a low "teaser" interest rate. The initial fixed period can be 5, 7 or 10 years. After the fixed term ends, the interest rate can adjust every six or 12 months. ARMs are considered riskier than Fixed Mortgages because the interest rates can increase over time, which can increase monthly payments.

Mortgage Insurance (Guarantee Fee)

USDA loans require an upfront guarantee fee of 1% of the loan amount, which can be financed into the loan, and an annual fee of 0.35%, added to the monthly payment. These fees serve as the USDA’s form of mortgage insurance and help keep the program running while offering low-cost financing to eligible borrowers.

Unlike conventional loans, USDA mortgage insurance remains for the life of the loan, unless refinanced into another loan type.

Occupancy and Property Restrictions

USDA loans are intended for primary residences only and must meet USDA eligibility criteria, which include being located in designated rural areas. Investment properties and second homes are not allowed under this program.

Pre-Payment Penalties

USDA loans do not carry pre-payment penalties, allowing borrowers to pay off their loans early or refinance without extra costs.

This flexibility allows borrowers to take advantage of lower interest rates in the future or pay down their mortgage faster.

Expert Advice

We’re your trusted financial partners for life, dedicated to simplifying your journey towards homeownership. Reach out today!

Exhale Lending is a mortgage brokerage firm that embodies trust, transparency, and a genuine desire to help clients achieve financial serenity. With our client-centric approach, expertise, and unwavering commitment to excellence, Exhale Lending is poised to make a meaningful impact on the journey towards homeownership for individuals and families alike.

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Exhale Lending, L.L.C.
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Equal Housing Opportunity
Office Location
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Cary, NC 27511
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