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USDA Loans

Home Mortgage
USDA Home Loans

The USDA loan, also known as the USDA Rural Development Guaranteed Housing Loan Program. Like the FHA, VA and other government-backed loans, it’s guaranteed by the U.S. Department of Agriculture. Originally designed to help provide a mortgage alternative to rural property buyers with limited financing options, is used today as a viable mortgage option for people who want to live away from cities and enjoy country living.

Advantages of a USDA Loan:
  • No down payment
    • The USDA loan comes with 100% financing. You don’t need to make a down payment, which can often be a big obstacle for first-time homebuyers.
  • Very low interest rates
    • Because the loan is guaranteed, Midwest BankCentre offers a lower standard interest rate that is not tied to your credit score or down payment.
  • Low monthly private mortgage insurance
    • As of October 1, 2016, the upfront mortgage insurance rate on a USDA loan is just 1%, with an annual fee of only 0.35%, the lowest numbers of virtually any mortgage financing program. The upfront fee can also be rolled into the loan, eliminating an out-of-pocket expense at closing.
  • Flexible credit guidelines
    • Borrowers with lower credit scores or less than perfect credit history can often meet the program’s qualifying guidelines.
USDA loan restrictions and eligibility requirements
  • Eligible Geographic Areas
    • To get a USDA loan, the property you buy must be in a USDA designated rural area. Almost 97% of the U.S. is eligible, which includes small towns and suburbs. The USDA Mortgage eligible area requirement map will show you where you can use this loan.
  • Income limits
    • THE USDA loan was originally designed for low to moderate income borrowers. The program’s guidelines define income level as being up to 115% of the area’s median income. For lower income buyers, all of a household’s income is considered during the application process, which helps increase eligibility. This can include income a family member living in the house but who isn’t listed on the loan application.
  • Length of the loan
    • The Midwest BankCentre USDA loan is a 30-year fixed rate loan. One of the most common types of mortgage, with low and affordable monthly payments.
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