USDA loans offer affordable options for rural homeownership.
Offered in conjunction with the U.S. Department of Agriculture (USDA), Rural Housing Loans with Southern Trust offer affordable 100% financing options. For those who qualify, 100% financing is available bringing the dream of homeownership within reach.
Key Features of USDA Loans
Financing up to 100% available
Qualified USDA loan borrowers can finance up to 100% of their loan, potentially including all closing costs! you can even finance up to 102% when the USDA Guarantee Fee is included.
No down payment required and larger acreage
If you qualify for a USDA loan, the financing may make it possible to buy a home with more acreage than an FHA or Conventional loan. USDA loans also do not require a down payment.
Closing costs can be financed
If you have extra cash in your pocket at closing, moving into a new home is much easier. With a USDA loan, you can potentially finance your closing costs, which allows you to save money when closing on your new home.
- The subject property must be located in a designated rural area (identified by USDA Rural Housing). Generally, rural areas are towns with less than 20,000 residents that are removed from urban areas.
- Both applicants must have an adjusted household income within program guidelines
- First-time homebuyers must complete homeownership counseling when credit score is below 660
- Maximum allowable DTI ratio is 41%
- Minimum credit score of 640 is required
- Subject property must be owner-occupied
- USDA requires an up-front Guarantee Fee of 2% on purchases, which may be financed.
- Site value cannot exceed 30% of total property value.
Why trust Southern Trust with your home financing?
Founded in 1998, Southern Trust Mortgage is a full-service mortgage lender. We offer diverse mortgage products designed to meet any home financing need. Our continued success is a result of the outstanding customer service we offer our clients and business partners. All of our loans are expedited through local processing, underwriting, and closing agents. Our industry-leading service truly sets Southern Trust Mortgage apart.