USDA Loans

Government-Backed Loans for Rural Property

5280Lend.com works with clients in Colorado and the Denver area on USDA mortgages. Our expert team has the knowledge and experience to guide you through the loan process.

As mortgage loan experts, we’ll thoroughly analyze your situation to determine whether you meet the qualifications for a USDA loan. We offer personalized service for homebuyers in Colorado.

What Is A USDA Loan?

The United States Department of Agriculture (USDA) backs loans for properties in rural areas. The program aims to encourage growth and investment in small agricultural communities.

There are restrictions on the property and the buyer’s income, however, a USDA loan offers many benefits to borrowers. For example, you don’t have to have perfect credit or put down a substantial down payment to qualify.

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If you dream of leaving behind the hustle and bustle of city life for the calmness and serenity of rural living, a USDA loan may make your dream a reality. The USDA offers a great low-down payment financing option mostly geared toward first-time homebuyers.

A Loan Guarantee for USDA Loans

If you get a loan through a local lender for rural property and meet all the USDA loan criteria, you can receive a loan guarantee from the Department of Agriculture. As a result, you may only need to pay a minimal down payment or even no down payment while maintaining a low mortgage rate. Like FHA loans, USDA loans also require mortgage insurance payments to insure against the costs of default.

Advantages of USDA Loans

USDA mortgages give low-income families the option for homeownership.

Option for 1% down payment.
Competitive interest rates compared to other loan types.
No minimum credit score requirements.
Broad definition of what qualifies as a rural area. For Eligibility: (https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp)

USDA loans empower many Americans to own and finance a home with favorable lending options. Contact us to learn more about the benefits of a USDA loan.

What Are the Requirements for a USDA Loan?

The eligibility criteria for USDA mortgages vary. For example, the income criteria differ based on the number of people in the household. Requirements and qualifications may adjust by region.

The owner must occupy the property.
The owner must have permanent residency or US citizenship.
All property-related costs must be less than 29 percent of your gross monthly income.
Your total monthly debts must not exceed 41 percent of your income (compensating factors can be considered for exceptions).

Reliable, consistent income for a 1-2 year period.
Acceptable credit history.
No reported FICO credit scores require proof of payment history such as utility bills or other non-traditional liabilities.

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Why Work with a Mortgage Bank for A USDA Loan?

As a mortgage bank, 5280Lend.com offers peace of mind to our clients during the home-buying process. Our team has the experience and knowledge to connect you to a mortgage program successfully.

USDA loans can feel complex because of the many specific government requirements. Fortunately, our team specializes in all mortgage types and we understand what it takes to secure a USDA loan.

We limit the number of clients we work with each month to maintain our standards for personalized service. Also, we are a local Colorado lender, meaning we understand Colorado loan laws and qualifications.

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USDA Loan FAQs

How Do USDA Loans Compare to FHA Loans?

Unlike FHA loans, USDA loans are only for eligible properties in rural areas. However, USDA loans often offer more favorable terms with fewer requirements than FHA loans for homebuyers interested in living in rural, agricultural communities

If you are interested in living in a rural area, our team can help determine whether a USDA loan will work for you.

Can I Use a USDA Loan for a Suburban Property?

Yes. Many communities in the United States fall within the USDA guideline for eligible rural areas. The USDA defines rural areas as any area with fewer than 35,000 people. Other population limitations may apply. Suburban communities often fall below the population requirement.

Many Colorado mountain and plains communities meet the standards for a USDA loan. Other requirements for income and location apply. Our experienced team can work with you to determine if a USDA loan meets your needs.

Does a USDA Loan Work for a First-Time Homebuyer?

Yes! In fact, USDA mortgages offer an effective solution for first-time homebuyers. Especially homebuyers with lower incomes, challenging credit histories, or less savings.

Trusted Guidance for USDA Mortgages

5280Lend.com connects Colorado homebuyers to mortgage solutions. Our team will help you find the best home loan to fit your circumstances. USDA loans offer a home financing option for many low-income and first-time homebuyers.

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