Rural-area homes may qualify for USDA loans. These loans provide 100% financing, including most or all closing costs. No down payment or monthly mortgage insurance are required, so payments may be lower than an FHA loan. Not limited to first-time buyers.

What is a USDA loan?

Perhaps the most advantageous loan available to non-veterans, the USDA loan helps families outside major metropolitan areas buy or improve homes and property. In some cases, the USDA (United States Department of Agriculture) actually finances the loan. In others, they simply insure it for a private financial institution.

What are the advantages?

• Better terms than FHA loans
• No down payment and 30-year fixed interest rate
• Relaxed requirements for credit and income
• Flexibility: buy or refinance a home, purchase or improve property to a maximum of $10,000, if value allows. Improvements are restricted to structural issues or livability issues. Refinances are restricted to rate reduction on a current USDA loan with no cash out.

Who is eligible?

Most Americans buying in rural areas are eligible. Your home must be a single-family structure. A manufactured home is eligible if it is less than one year old but must be from a USDA approved manufacturer/dealer. Property can also qualify. There are income limits, which depend on the average income in the county where you’re buying and the number of employed members of the household. The combined income of all occupants may not exceed the county income limitation.

Eligible areas include parts of:

• King County, Washington
• Skagit County, Washington
• Snohomish County, Washington

How much can my loan be?

USDA loans have no limitation for loan amount except for the maximum amount you can qualify for. The amount you qualify for depends on your income, financial situation and credit history. Our mortgage advisors can provide an estimate with no obligation.