USDA Loans in Colorado

USDA Loans Colorado

USDA loans may be the least known home loan program in Colorado, but they are still worth considering, especially if you are planning to buy a home in a rural area in Colorado. The US Department of Agriculture invested billions in its Rural Development program in 2014 to help hundreds and thousands of families to purchase and enhance their homes. Thus, USDA loans are also known as home loan assistance programs aimed at improving the quality of life and economy in rural America.

One of the top benefits of USDA loans for Colorado homebuyers is the lower interest rates. Another advantage is the absence of down payment mortgages, particularly for low-income families in the rural and suburban areas in Colorado.

There are different programs under the USDA loans, such as direct loans. The USDA can issue a home loan for very low- and low-income applicants. They come with subsidies, so the interest rates can be as low as 1%. However, income limits will vary depending on where you are making your purchase in Colorado.

Are you eligible for any of these USDA loans in Colorado? Contact us for a consultation. Our extensive knowledge and experience as brokers make us capable of finding the best home loan for every client in Colorado.

Available to qualified individuals who are purchasing or refinancing in an area that is not considered a major metropolitan area by USDA.

USDA Loans

The USDA loan provides financing for low to moderate income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings in rural areas as their primary residence. These loans are eligible up to 100%. To learn more about eligible addresses for the loan guarantee, please check out the USDA website here.

We provide this loan program for many reasons. First, we believe every family should be able to afford their home, no matter where they choose to live. Secondly, it allows us to work with low to moderate income families and help them realize that the American dream is real and they too can own a home. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality life in rural areas.

FUN FACTS

  • 97% of the US is eligible! Many suburban areas of large MSAs are eligible- not just for rural areas.
  • USDA’s footprint actually encompasses entire towns as well as many suburban areas which borders cities.

HERE IS THE BREAKDOWN FOR USDA LOANS:

  • Must be located in a rural area
  • Low to moderate household income as defined by Rural Development
  • Must be owner-occupied
  • 30-year fixed rate
  • 620 minimum credit score
  • 1% guarantee Fee rolled into the loan + .25% annual guarantee fee also applies
  • Household income may not exceed 115% of the area’s median income level as determined by Rural Development.
  • Reserves are not required
  • Seller contributions limited to maximum 6%
  • 100% of borrower’s cash to close may come from gift funds
  • 100% financing
  • No maximum loan amounts

Company NMLS #1738617