USDA Loans

USDA loans are an affordable, easy to qualify for loan option for clients with low to middle income who are willing to live in certain rural and suburban areas across the United States. These loans are sponsored through the U.S. Department of Agriculture (USDA), which regulates who is eligible for this low-cost loan option. While some home financing requires that clients put down a substantial down payment, USDA loans boast minimal down payment options among their benefits. The team at Nickel City Funding can quickly identify if you meet income limits and other requirements for a USDA loan and start the approval process, fast. Contact us if you want to purchase a home and are open to rural areas in North Tonawanda, Hamburg, Amherst, West Seneca, Lancaster and all residents of New York.

USDA Loans were a concept created by the USDA Rural Development division to help populate and grow undeveloped and rural areas. There are a few different types of USDA loans, but today we will focus on the very popular Single Family Housing Guaranteed loan. This home financing option is fully funded through lenders like Nickel City Funding, but guaranteed (insured) through the USDA.

Because they are backed through a department of the federal government, USDA loans are a type of conventional loan. Other types of common nonconventional loans include FHA loans (through the Federal Housing Administration) and the VA loans (through the U.S. Department of Veterans Affairs). Most nonconventional loans have low or no down payment and fixed rates. They are a good alternative to conventional loans when a person has low income or otherwise may have a difficult time securing traditional financing.

USDA Single Family Housing Guaranteed Loans are available for up to 100% financing (no down payment) on a home within a federally approved area. These loans are only available to clients whose income does not exceed 115% of the median income in your area. All Single Family Housing loans also have a 30-year term and have fixed rates.

In addition to meeting the income requirements for USDA eligibility. Other requirements include:

• You are a U.S. citizen, non-citizen national or qualified alien
• You have not been suspended or debarred from federal programs
• You must live in your USDA-financed home as your primary residence
• You have a credit score of around 620 or higher, although some clients qualify with less
• Your home must be in an eligible area

When you're ready to USDA loans to purchase a home in a rural area, contact Nickel City Funding. We can help you explore this and other financing and narrow your search to areas with USDA approval. We work with clients in North Tonawanda, Hamburg, Amherst, West Seneca, Lancaster and all residents of New York.