image of a home in a prairie

Here at Patriot Home Mortgage, our mission is to provide our clients with the home loan that best fits their needs. One of the first things we tell our clients is that mortgages are not one-size-fits-all. Many homeowners qualify for a conventional home loan, but everyone’s situation is unique! If you’re looking to fund a renovation project or want to flip a property, then a construction home loan might be for you. Or maybe you’re retired and looking to dip into the equity in your home to finance day-to-day expenses — you might want to apply for a reverse mortgage. We also specialize in helping veterans find the mortgage financing they need to buy their dream home. 

Today’s blog, though, is all about a very specific loan program offered by the USDA for rural housing development. USDA loans are a great option for lower-income home buyers who are looking to live in rural America. Continue reading to learn more about USDA loans, and if you think that a USDA loan might be right for you, schedule a consultation with our mortgage company at our offices in St. George and Mesquite!

What Is a USDA Loan?

In the simplest terms, a USDA loan is a home loan that is backed by the USDA and created for borrowers who are looking to buy homes in a rural area. USDA loans were created as part of the Rural Development program in order to help improve the economy and quality of life in rural America. Most metro areas are excluded from USDA mortgage financing, but, depending on your location, there can be home loan options for suburban properties.You can check eligible addresses for USDA loans here.

This mortgage financing option is primarily for borrowers who aren’t able to afford a large down payment and who don’t qualify for a conventional mortgage. Our mortgage company professionals are happy to talk with you in more depth about what a USDA loan is and how it works. Schedule a consultation with Patriot Home Mortgage in St. George or Mesquite today.

Who Qualifies? 

Minimum qualifications. Information taken from USDA.gov:

  • U.S. citizenship or permanent residency
  • Typically, a credit score of at least 640
  • Property is located in a qualified rural area 
  • Property serves as primary residence
  • Dependable income and ability to make monthly payments

Eligibility for different types of USDA loans primarily depend on the property type and income requirements, though, like any mortgage financing options, various factors play a part in each individual loan application — including credit, income, property usage, location, and more. As always, we’re happy to help you understand what loan is right for you.

Types of USDA Mortgage Financing

There are a variety of mortgage financing loans under the USDA loan program. We’ve provided information about a few of the types of home loans applicable to our clients here at Patriot Home Mortgage in St. George and Mesquite, but there are also Rural Business and Water & Environmental USDA loans along with the three below. If you are interested in learning more about any of these mortgage financing options, schedule a consultation with us today.

Single Family Housing Guaranteed

All USDA loans are created to insure home loans for those with a lower income in rural areas. Single Family Housing Guaranteed is a loan program specifically for low- and moderate-income households. Learn more here.

Single Family Housing Direct

This program assists low- and very-low income applicants in eligible rural areas to obtain mortgage financing by providing payment assistance. Applicants interested in a direct loan must have an income that is at or below the applicable low-income limit for the area that they are looking to buy a home. You can learn more about Single Family Housing Direct USDA mortgages and how they differ from other USDA loans here.

Multi-Family Housing

Along with single family mortgage financing, the USDA also offers multi-family rental housing home loans in eligible rural areas. These multi-family housing projects are aimed to provide housing for low-income older adults, disabled individuals, families, and farm workers. The USDA also subsidizes rent for low-income tenants within these housing complexes. Learn more here.

Patriot Home Mortgage USDA Loans

We’re proud to help members of our St. George and Mesquite communities find the mortgage that helps them move into the home of their dreams, including USDA loans. We’re committed to helping you find the right loan so that you can live better! 

Whether you’re looking for a conventional mortgage, a VA loan, USDA loan, jumbo loan, or more, we’re here to help you find the loan that meets your needs! Our mortgage company has offices in St. George and Mesquite, and our mortgage company professionals are always happy to answer your questions and guide you through the home loan process. Follow our blog to learn more, and contact us today to get a free consultation and start the mortgage application process.