USDA Loans

If you’ve got dreams of leaving behind the hustle and bustle of city life for the calmness and serenity of rural living, then choosing a Colorado USDA loan could be a good option for you. We look forward to welcoming your inquiry.

What is a USDA loan?

If you don’t believe a conventional loan is an option for you and you would like to live rurally for agricultural purposes, you may meet the criteria for a Colorado USDA loan. USDA loans are for people who want to finance properties in rural areas or for agricultural use – such as if you were a farmer.

There are restrictions on where these properties can be and what your income is, but it can be a beneficial option for many. You don’t have to have perfect credit, and you also don’t have to put down a substantial down payment either.

If you’re thinking city life may not be for you, and you’re after something a little quieter in the country, there’s every reason to believe a Colorado USDA loan is your best option. Why not get in touch with us to find out more about it? You can also read more about eligibility and varieties of this loan below.

What USDA Loans are Available?

The United States Department of Agriculture understands there is no “one size fits all” approach to housing or loans. As a result, they decided to offer three loans under the title of USDA loan to enable people to choose one that suited their needs the best. These are below.

A Loan Guarantee

If you get a loan through a local lender for rural property and you meet all the USDA loan criteria, you can receive a loan guarantee from the Department of Agriculture. As a result, you may be able to put very little or no money down as a payment, as well as benefiting from low mortgage rates in many cases. However, it’s important to be aware that if you put very little money in as a down payment, or none at all, you will need to pay mortgage insurance premiums.

Direct USDA Loans

If you are on a low income, the USDA issues direct loans which cater to your needs and vary by region. Get in touch to find out about Colorado USDA loans. Typically, these direct loans offer low interest rates – sometimes as little as one percent – as well as subsidies and other options to suit each buyer. The goal is to give everyone a fighting chance of being a homeowner.

Loans and Grants for Home Improvement

Over time, our homes can fall into a state of disrepair. If you don’t have the money you require to carry out repairs, it can begin to spiral out of control. After all, even the cost of replacing a roof can cost up to $16,000, if not more. Therefore, the Department of Agriculture also offers grants and loans for home improvement – as long as you fit into the criteria. Given their status as either a loan or a donation, you can be gifted the money with no requirement to pay it back, or you pay it back with a low interest rate. You can even combine loans and grants together for as much as $27,500 in help to get your property in tip-top shape.

Eligibility Criteria for a USDA Loan

The eligibility criteria for a USDA loan can vary from one region to the next. For example, a Colorado USDA loan can vary greatly from one on offer further up the country. What’s more, it can also depend on how many people are in your house, and the type of residence you’re looking to buy.

Criteria for eligibility of a USDA loan includes:

  • The owner must occupy the property
  • The owner must have permanent residency or US citizenship
  • All your property-related costs must be less than 29 percent of your monthly income.
  • Your other debts must not exceed 41 percent of your income (negotiable for good credit)
  • Reliable, consistent income for a minimum period of two years
  • Acceptable credit history
  • No debt collection history within 12 months
  • Low credit scores require strict underwriting standards
  • Low credit scores require payment history such as utility bills

If your credit score is higher than 640, you may also benefit from a far smoother and seamless transaction process. However, if you’re unsure whether you qualify for a Colorado USDA loan or not, get in touch. We’ll be more than happy to walk you through the process.