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USDA Rural Housing Guaranteed Loans in Wisconsin, Illinois, Minnesota and Florida

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Effective 01/18/2012 2012 income limits have been updated
Effective 12/07/2011
USDA Raises Upfront Guarantee Fee to 1.5% for Refinance Transactions
10/12/2011
We Continue to Fund and Close USDA Rural Housing Loans
Effective 10/01/2011
USDA Fee Changes on The Horizon
Announcement
USDA Rural Development Loans are Still Available

USDA Rural Housing Loans

You don't have to live out in the country to qualify for USDA Rural Development Loans!

USDA home loans have been helping rural Americans become homeowners since 1949. It has invested well over $54 billion in helping people purchase their own homes.

Owning your own home is a part of the American dream, but in rural areas, financing a home can be difficult. Jobs often pay less than in more populated areas, making it harder to obtain credit. Also, rural lenders generally require a large down payment, and often, interest rates and construction costs are higher than in urban areas. However, if you want to own a home in a rural area*, the U.S. Department of Agriculture (USDA) Rural Development may be able to help.

The Guaranteed USDA Rural Housing program agrees to guarantee a loan so the lending institutions can help buyers while incurring less risk.
 

USDA Rural Housing program highlights:
  • Moderate income limits apply - based on family size (see below)
  • No down payment required.
  • No Prepayment Penalties.
  • Purchase: 2% upfront fee that can be rolled into the loan
  • Refinance: 1.5% upfront fee that can be rolled into the loan
  • 0.3% Yearly fee paid monthly - Effective 10/01/2011 USDA Fee Changes on The Horizon
  • A one-time guarantee fee is paid at closing. In some cases, this fee, closing
    costs and repairs may be included in the loan.
  • Competitive 30 year fixed interest rates.
  • No maximum loan amount.
  • No limits on cash contributions.
  • Not restricted to first time home buyers
  • Home must be occupied as your permanent residence.

See if your income qualifies for a USDA Rural Housing loan
Check to see if the property is in an Eligible Area for Rural Housing Loans

Income Qualification Information:

The most accurate way to check your income for qualification is to use the USDA Income Calculator. The calculator on USDA's website is most accurate because it is based on area income limits minus any deduction you can take to offset your income. The most common income deduction is for child care expenses. For general purposes, you can also view the most recent income limits with a county by county breakdown by family size from the pdf files below.

Wisconsin Income Limits
Illinois Income Limits
Florida Income Limits
Minnesota Income Limits

Ineligible Areas for USDA Rural Housing loans:

if you know the address of a property that you are interested in, you can go to USDA's website to determine if a specific address is eligible (click the accept button and then type in the address). If the system is unable to determine eligibility based on the address you entered, that doesn’t mean it isn’t eligible. It just means the system couldn’t find the address, so it is unable to determine eligibility. At this point, you can either contact us us and we will help in determining if the property is eligible or sometimes it is just a matter of entering the correct format of the street to get the system to find the property (what I call HWY M is really County Road M according to the system).

Additional Information on our blog:
Are USDA Rural Housing loans only for "Farmers"?
USDA Rural Housing Refinance - Features and guidelines
USDA Rural Housing Refinance: Program Information

Detailed Wisconsin ineligible map
The counties in white are 100% eligible. The counties shaded green have ineligible areas within the county, except for Milwaukee County which is 100% ineligible. If you are looking for a property in Dane County, you will want to know the area’s that are eligible. Open up the map of Wisconsin (link above) and click on Dane county. That is going to bring up a PDF map of part of Dane County. The areas shaded in green on the county specific map are ineligible. You can zoom in on the map for a detailed look of the ineligible area. One side of a street or road may be eligible, while the other side may not be eligible.

Other programs that may be of interest:
FHA Loans
FHA 203K Rehab Loans
VA Loans
100% Financing Programs



Mortgage Programs
100% Financing (No Money Down) Programs
First Time Home Buyer Mortgage Programs
My Community Mortgage
Government Loans including FHA, VA and Rural Housing
Refinance Programs

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* Rural areas consist of communities that have 20,000 and under in population and are not a part of an urban area.

 

Recent Rural Housing mortgage posts on our blog:

USDA Raises Upfront Guarantee Fee for Refinance Transactions

EFFECTIVE Wednesday, December 7, 2011: The upfront guarantee fee for all refinance transactions will increase from 1 percent to 1.5 percent at this time. This increase to the upfront guarantee fee for refinance transactions will make over $1.1 billion dollars in refinance commitment authority available to eligible homeowners. Interest rates continue to remain at very low levels affording responsible homeowners the opportunity to refinance their existing Single Family Housing Guaranteed loan, resulting in lower monthly payments.

Read the rest of this entry »
 

USDA Rural Housing Refinance: Program Information

This program is for those that already have a USDA Rural Development Loan in place. The USDA Refinance is designed to lower the interest rate on a current USDA mortgage and is only available with 30 year fixed rates. Generally, these refinances are streamlined and can be done with ease. In some cases we won’t need an appraisal if the borrower is willing to pay their closing costs out of pocket.

Read the rest of this entry »


If You Are Looking for a Mortgage with No Down Payment, Drive Outside the City

Any home secured by a USDA loan must be located in an area labeled “rural” by the USDA. In addition the borrowers must meet certain requirements. Their income cannot be greater than a benchmark level for their area and they usually need a credit score of 620 or above to qualify.

Read the rest of this entry »


We Continue to Fund and Close USDA Rural Housing Loans

We continue to offer the USDA Rural Housing program and its business as usual for us. Our lending relationship and underwriting approach gives us the ability to continue to process and fund these loans. If you’ve found yourself in this situation give us a call and we’ll be able to help you!

Read the rest of this entry »
 

Lesser Known Advantages of USDA Loans

An internet search of the term “USDA Loan” will likely yield a lot of the same information. Websites, articles and blogs will discuss the great advantages of buying a home with no money down and the ability to borrow as much as 100% of the home’s value. But there are quite a few other advantages that don’t get as much attention.

Read the rest of this entry »


USDA Re-Structuring Fees to Make the Program More Stable

The upfront fee has been 3.5% of the total loan amount for some time now. This fee could be added into the loan amount and repaid over time. But now the fee is going to be lowered to 2% and an annual fee of 0.3% of the outstanding balance will be charged to borrowers each year. This provides more income for the program and allows it to have more funds for future borrowers as well as for refinances.

Read the rest of this entry »


Advantages of a USDA Rural Housing Mortgage

The original intent of the United States Department of Agriculture (USDA) housing program was to offer mortgages for people of low income located in the various rural parts of the country. Due to the severe changes in conventional loan guidelines more people have looked into the possibility of using a USDA loan. Here are some of the top benefits of the current version of the program.

Read the rest of this entry »


Utilize USDA Loans to Buy a Home With No Money Down

Buying a home with no money down at an affordable rate is still a very real possibility. Many people still do not know about the benefits of the USDA Home Loan and how it can help a wide range of people become homeowners.

Read the rest of this entry »
 

USDA Rural Housing Loans are Still Available

For people that stay current with financial news there has been quite a bit of buzz with the USDA loans. Earlier in the year there was a statement that the funds available for USDA loans would be depleted by April. Another statement said that new funds would be available. However, the information about when and how those funds would be available seemed confusing. Now, everything has finally settled down and it seems it is back to business as usual for the USDA program.

Read the rest of this entry »
 

Are Wisconsin USDA Rural Housing Loans Only for Farmers

We will be discussing the USDA Guaranteed Rural Housing program. The Guaranteed program is for low to moderate income applicants to purchase a primary residence in a “rural” area of the state. These mortgages are processed, underwritten and serviced by a bank or lender with certain “guarantees” from the USDA.

Read the rest of this entry »
 

Benefits of the USDA Loan

Many people are looking for ways to take advantage of the historically low mortgage rates. Some of these individuals may not have quite enough for a 5% down payment on the home, yet they have other strong financial qualities. For these people, the USDA home loan in Wisconsin, Illinois, Minnesota and Florida may be a great solution.

Read the rest of this entry »
 

USDA Rural Housing Refinance

We get this questions a lot; "Can I refinance into a USDA Rural Housing loan?" and the answer, 9 out of 10 times, is no. Unless your current loan is a Guaranteed Rural Housing loan or a USDA Section 502 Direct loan, you cannot refinance into the program.

Read the rest of this entry »
 

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