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  The USDA Loan 

The USDA loan program was created to help increase home ownership in areas between high density residential and agricultural land. The USDA loan is a standard 30 year fixed rate mortgage made by a lender that is guaranteed by the United Stated Department of Agriculture (USDA).   



  • Down Payment and Closing Costs:
  • 100% financing available. No down-payment is required.
  • Gift funds can be used for down payment and closing costs allowed.
  • Seller may contribute up to 6% towards buyer's costs.
  • Credit Qualifying Guidelines such as:
  • Property Specific Guidelines:
  • The USDA loan is for primary residences only.
  • Borrower's who currently own a home and would like to convert their existing residence into a rental property may not use the USDA loan if their existing residence is within a reasonable driving distance from the new property.
  • Condominiums and Planned Unit Developments (PUD's) located within the eligible area are acceptable with a minimum of 51% ower-occupancy within the complex.
  • Income producing properties are not eligible.
  • Property flip transactions wherre the seller has not been on title for at least 90 days prior to the purchase contract date are not eligible.
  • Manufactured homes are not eligible.
  • No inspections are required (ie. pest, roof, etc.)
  • Additional Underwriting Guidelines:
  • Maximum Loan Amount is $417,000.00.
  • Higher debt-to-income ratio's than other home loan programs.
  • Less than two years on the job is allowed.
  • Self Employment is acceptable.


        To download a USDA flyer, click here: USDA Flyer.pdf



USDA Disclaimer: Cornerstone Mortgage is not acting on behalf of or at the direction of the USDA the Federal government.