A USDA mortgage can be a great home financing option for buyers who want to save money on upfront housing costs. With zero money down required and the ability to roll closing costs into the loan, USDA mortgages are a popular choice for buyers who may be short on cash. Best of all, USDA loan borrowers can usually still enjoy a better-than-average mortgage rate.
Overview of Fresno USDA Loans
USDA loans are a bit different from other traditional mortgages; however, they’re pretty straightforward. You can use a USDA mortgage to purchase a home in a designated rural area without having to make a down payment. Buyers can also finance their closing costs into the loan, as well as the required mortgage insurance, making the loan a true 100% financing program. This is especially beneficial to first-time buyers, those who may be “cash poor,” or anyone who simply wants to save money on upfront mortgage costs. Contrary to what many people believe, you do NOT have to be a first time home buyer in order to get a USDA loan.
When it comes to getting approved for a USDA mortgage, both the borrower and the home itself must meet certain eligibility requirements. In order for a home to be eligible for USDA financing, it must be located in a USDA-approved area. There are many homes in Fresno and the surrounding areas that may be eligible for USDA financing, and a good real estate agent can help you find them. You can also check the USDA’s Property Eligibility Map online to see if a particular property is in a USDA-eligible area. Even if you are considering buying a home in a fairly developed community, it may still be USDA-eligible. Many Fresno home buyers are surprised to find out that there are a lot of properties that are USDA-eligible.
In addition to meeting the USDA’s location requirements, USDA loan borrowers will also need to meet certain income and credit guidelines. Keep in mind that loan underwriting standards are subject to change, so it’s best to speak with one of our mortgage professionals for the most accurate and up-to-date eligibility requirements.
Refinancing a USDA Loan
If you already have a USDA mortgage, you may be able to refinance it with less paperwork and fewer costs through the USDA Streamline Refinance loan. Cash-out refinancing (where you refinance your loan for more than you owe and receive the difference in cash) is not permitted with USDA mortgages.
Additional USDA Loan Benefits
- Seller-paid closing costs are allowed
- Gift funds for closing costs are allowed
- Available in 30 or 15 year fixed rate terms
Where to Get More Information
Talk to one of our loan officers by calling (800) 564-4342 or fill out the form on this page and we will contact you with more details after reviewing your information.
You can also learn more about the program on the USDA’s official website here, or talk to your real estate agent. He or she may be familiar with USDA loans and could help you find eligible properties.