Mortgages backed by the USDA allows 100% financing to those in less densely populated areas

USDA loans are mortgages backed by the U.S. Department of Agriculture (USDA) as part of its USDA Rural Development Guaranteed Housing Loan program. It is the only other program outside of the VA that will allow 100% financing.

Fore more detailed information on USDA Loans see below and  CLICK HERE to check eligibility.


Who qualifies?

  • Anyone whose household income does not exceed the moderate income threshold limit for number of people in a household. This is also calculated at 115% of the median area income for qualified properties –See attached Colorado income limits

  • Has a minimum credit score of 580 (non-traditional credit not allowed)

  • Is a US Citizen

  • Is a Lawful Permanent Resident Aliens

  • Is a Non-Permanent Resident Aliens


USDA Insures but does not lend directly.  The government simply guarantees loans made by the mortgage lenders after USDA reviews the mortgage loan.


Eligible Property Types:

Must be a primary residence only and can only have ONE USDA loan outstanding at any time.

  • Single Family Homes

  • Log Homes (provided there are 2 log home comps available)

  • Modular Homes

  • PUD (Attached  / Detached)

  • Condominium (must be on FHA or VA approved list)

  • Townhomes


Property must be in an area deemed rural by USDA. A Colorado map has been provided to show a few general areas of where USDA can and cannot be used.  NO max loan amounts!! BUT loan limits are based on falling within income limits and debt ratios of the USDA program. Max ratios are 33% Housing (Front-end) and 41% on total debt to income (DTI). Maximum financing equals APPRAISED value plus Guarantee Fee. If value comes in higher than the purchase price, we can finance some or all customary closing costs.


Eligible Loan Types:

  • 30 year fixed

  • 15 year fixed

  • NO ARM products allowed

USDA Guarantee Fee

The USDA Guarantee Fee is similar to mortgage insurance. Just as FHA has upfront and monthly MI and VA has a funding fee, USDA has a one-time financed guarantee fee of 1% of the total loan amount (which can be financed into the loan) and an annual fee of .35% of the loan amount. The annual fee is spread over 12 months and added to the monthly mortgage payments. The annual fee is for the life of the loan.


Determine if the property you want to finance is eligible for a USDA loan.


Determine if you are within the income limit defined per County.

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