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Honestly, I’m kind of sick that I saved up for years to put 20% down on my first home. I could have purchased that home years earlier and not wasted all that rent money… I’m so thankful I heard about it in time to purchase this home, it just made so much more sense for me. Find USDA services and resources for farmers, ranchers and producers. Rural areas are defined as not being a part of an urban area or open country. The lender will also consider the population of the region which must not exceed 35,000.

If there are additional state-specific requirements they will be listed above. Applications for this program are accepted through your local RD office year round. A .gov website belongs to an official government organization in the United States. Veterans and active US military may be eligible for a $0 down VA loan.
Income Limits for USDA Homes
Most rural communities throughout the nation fall into this category. Did you know particular USDA homes may or may not be eligible in various locations? By completing the USDA prequalification request our specialists will be able to let you know how much you can afford and what your estimated monthly payment will be. Our team will also help you identify the eligible USDA areas near you. Homebuyers often pay no closing cost out of pocket because the seller can contribute, family gifts are accepted, and/or in some cases cost can be financed in. Pandemic Assistance Help for farmers, ranchers and producers impacted by COVID-19 market disruptions.

The home you plan to obtain aUSDA mortgagefor must be in eligible locations around the US. Most homes are rural; however, some suburban areas may qualify. The Farm Service Agency makes operating loans of up to $5,000 to eligible individual youths age, 10 through 20, to finance income-producing, agriculture-related projects. A project must be of modest size; educational; and initiated, developed and carried out by rural youths participating in 4-H clubs, FFA or a similar organization. Producers must purchase NAP coverage prior to a disaster occurring. NAP coverage purchase dates can be found in the important date section on the homepage.
Single Family Housing Direct Home Loans in Washington
You’ll find that the bigger cities within a state are shaded. The mapping tool also allows you to look at homes for sale in eligible areas. The map will reveal if your area is eligible for the program. You can also use the zoom tool to look at certain areas in greater depth. Once you visit the eligibility website, click on ‘Single Family Housing Guaranteed.’ Then, click the ‘Accept’ button to proceed.

For a complete list of USDA eligible counties, as well as their income limits you can visit this link or contact your nearest USDA loan representative. With a conventional mortgage, most borrowers are required to come up with some form of down payment, generally up to 20% of the purchase price of the home. USDA loans are one of only two loan options, including VA loans that offer zero-down financing.
Down Payment is Not Required
By providing adequate money for housing loans, business loans, utilities and community development, the USDA is committed to the future growth of Washington State rural communities. A USDA loan is a mortgage that offers considerable benefits for those wishing to purchase a home in an eligible rural area. USDA home loans are issued through private lenders and are guaranteed by the United States Department of Agriculture .
The Single Family Housing Guaranteed Loan Program helps low-income and moderate-income individuals and families secure financing by incentivizing lenders through loan guarantees should the borrower ever default. On the other hand, the Single Family Housing Direct Home Loan is for low-income and very low-income individuals and families and can be applied for directly through your local USDA Rural Development Office. Low Mortgage Insurance – The monthly mortgage insurance on USDA loans, called the “guarantee fee” is lower than it is for other government-backed mortgages, such as FHA loans. Site loans are made to provide financing for the purchase and development of housing sites for low- and moderate-income families. Section 524 loans are made to acquire and develop sites for low- or moderate-income families, with no restriction as to the method of construction. Low-income is defined as between 50-80% of the area median income ; the upper limit for moderate income is 115% of the AMI.
Everett, Marysville, Smokey Point, BurlingtonUSDA defined rural areas can change from state to state, but are typically defined as any property located in a rural area, open country, or an area with less than 25,000 residents. This means that even if a property is located on the outskirts of a major city, in some small suburban community, it may still be defined as USDA eligible. For more information on a USDA eligible property in your area, please contact your PRMI representative. Overall, property eligibility and financial profiles are the two main factors that determine the approval process. When it comes to financial histories, you must have a decent credit score and a suitable DTI to qualify.
Farmers and ranchers apply to an agricultural lender, which then arranges for the guarantee. The FSA guarantee permits lenders to make agricultural credit available to farmers who do not meet the lender's normal underwriting criteria. The Farm Service Agency provides direct and guaranteed loans to beginning farmers and ranchers who are unable to obtain financing from commercial credit sources. Each fiscal year, the Agency targets a portion of its direct and guaranteed farm ownership and operating loan funds to beginning farmers and ranchers. FSA encourages beginning farmers and ranchers to learn more about the business of aspects of farming or ranching.
USDA loans cannot be used to purchase second homes or investment properties. Whereas most traditional loans are spread out over a maximum of 30 years, the USDA Single Family Housing Direct Home Loan has 33-year loan terms for low-income borrowers and 38-year loan terms for very low-income borrowers. A longer loan term means the amount you owe is spread out over a longer period of time, making your monthly mortgage payments lower.

You can view more detailed requirements for USDA loans on this page. If you would like to have a loan representative answer your questions about USDA loans, we can match you with a lender that offers USDA loans in Washington State. The lender that we match you with will provide you with a free consultation, and also the opportunity to get pre-approved for a USDA loan. Effective December 1, 2022, the current interest rate for Single Family Housing Direct home loans is 3.75% for low-income and very low-income borrowers. Our team of experienced and talented professionals have come together to provide you and your family the ultimate mortgage experience.