USDA Loans – Colorado USDA Mortgage Lenders

Many assume that because USDA loans are a program through that United States Department of Agriculture that the loans are for working farms, and not residential properties. This is actually not the case, and the complete opposite. The USDA home loan programs are for non-agricultural homes in rural areas.

An alternative name to USDA loans which they are commonly referred to as is “rural housing loans”.  There are two types of USDA loans, direct and guaranteed.  USDA direct loans are provided directly by the Department of Agriculture, and are only available to the lowest end of the income spectrum.  The USDA guaranteed loan, however, is available to low and middle income households.  We provide UDSA guaranteed loans.

USDA guaranteed loans are offered throughout most of Colorado, and provide an affordable chance at ownership.  These loans offer truly excellent loan terms, which are outlined below.
 

What are some of the advantages of USDA guaranteed loans?

USDA loans provide opportunities to buy homes with far greater terms than many conventional and FHA programs.  This includes the potential of 100% financing, lower rates, lower fees, and fast processing.  You also can finance mortgage insurance into your loan amount.

  • 100% Financing
    You may qualify to purchase a home using a USDA loan without any down payment required. This is practically unheard of anymore with other mortgages, and a major advantage of USDA mortgages.
  • Low Fees
    The fees on USDA loans are often lower when compared to other loans. Not only that, but you can borrow up to 102% of the loan amount, so your closing costs can be included in your loan.
  • Low Interest Rates
    Our USDA interest rates in Colorado are very competitive.  We encourage you to compare the loan terms we offer you to all other UDDA mortgage lenders in Colorado.
  • Mortgage Insurance
    You can finance your upfront mortgage insurance into your home loan. With USDA loans, mortgage insurance is actually called the “guarantee fee”, which acts the same as PMI (private mortgage insurance), and FHA MIP (mortgage insurance premiums.
  • Easy Process
    The application and loan process on USDA loans is pleasantly simple and efficient. While it may seem confusing, we can assure you that we will simplify everything for you during your loan consultation, and through every step of the USDA loan process.

 

Colorado USDA Loan Requirements:

To know for certain if you will be approved for a USDA loan, and what terms will be offered to you, it is best to get pre-qualified.  We offer a free consultation and can answer all of your questions and help you know what you can qualify for.

  • Property Eligibility
    The property that you want to purchase must be eligible for financing through the USDA. You can search to see what properties are eligible on the USDA website search tool.  You can search in specific areas as well as by an exact address.
  • Owner Occupied
    The property must be owner occupied and a primary residence.  You can not buy an investment property or a second home through the USDA.
  • Income limits
    The limits to how much money you can make is set at both the state and county level.  There are a variety of factors that determine how much your household can bring home in income. The best way to find out how much you can borrow us to call us or search here to see the income limits for your county for single family homes
  • DTI Ratio
    Your debt-to-income ratio must be 41% or lower. How this works, is the maximum percentage that your mortgage payment and all other credit reported debts, such as auto loans, credit cards, personal loans, and student loans, must not exceed 41% of your gross monthly income.
  • Credit Requirements
    You must have a credit score of 580 or higher to be approved. In addition to the credit score guidelines, USDA loans also require that you show at least 3 trade-lines with at least decent payment history. A trade-line is any type of debt reported on your credit that requires payments, such as credit cards or car loans. If you do not have 3 conventional types of trade-lines, alternatives may be considered, such as utilities, insurance, and other types of bills with good payment history.

These are the concrete requirements that the USDA has set as guidelines for any USDA loan product.  Your personal USDA loan will likely have some basic conditions that must be met prior to closing.  Our processing is fast and simple and we can help you get into your new home as quickly as possible.

Prequalify for a USDA Loan:

It’s easy, just request a free consultation and we will assist you through the pre-qualification process.  The best way to find out exactly what you can qualify for is to speak with a home loan representative.  You can get answers to all of your questions, find out how much you can borrow, what the loan terms will be, and other useful information.  We provide a hassle free consultation, and if you can opt out from future contact at anytime.

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