USDA Loan Frequently Asked Questions

Security First Financial offers hundreds of affordable loan options, including USDA loans. USDA loans are a great tool for low- to moderate-income borrowers looking for homes in rural areas.

Check out these frequently asked questions to learn more about how they work...

What does USDA stand for?

USDA stands for the Unites States Department of Agriculture. This is the government organization that insures the loan.

What is a USDA loan?

USDA loans were designed to make rural homeownership more affordable. These fixed-rate loans are government insured and are often available with 100% financing.*

Who is eligible for a USDA loan?

To qualify for a USDA loan, the property must be in an eligible area. There are geographic restrictions, but in general it needs to be in a rural area. The property must be owner-occupied, and only one-unit homes are eligible.

We can help you figure out if you’re eligible for this loan. It’s a great option for first-time homebuyers, but you don’t have to be a first-time homebuyer to qualify.

What down payment is required with a USDA loan?

You can get a USDA loan with no down payment.* This is one of the main benefits of a USDA loan since it makes it easier to buy a home sooner.

Do you need great credit to qualify for an USDA loan?

You can qualify for a USDA loan with a credit score as low as 620.

Will I have to pay mortgage insurance?

You will likely have to pay mortgage insurance with a USDA loan. In most cases, your mortgage insurance payment will depend on how much your down payment is.

What can I use a USDA loan for?

USDA loans can be used to buy a new home, but in some cases can also be used for a cash-out refinance. There is also a version of USDA loans for manufactured homes.

A USDA loan is one of the many affordable home financing options available. As always, we’re here to help you find the option that works for your unique needs, whether it’s a USDA loan or another program.

Contact us today if you're interested in a USDA loan or have any other questions. (303) 740-8300

*Closing costs and fees may still apply

Original blog post by Primary Residential Mortgage Inc.

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Security First Financial is a division of Primary Residential Mortgage, Inc. PRMI NMLS 3094. Branch NMLS ID# 385589. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Colorado – Regulated by the Division of Real Estate, UCCC #987701-016. Arizona – Arizona Department of Financial Institutions 0902614. Massachusetts – Licensed by the Massachusetts Division of Banks as a Broker and Lender as #MC3094.

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