Leaman Team Powered by New American Funding Austin USDA Loans

USDA Frequently Asked Questions

Austin USDA Loans

Leaman Team Powered by New American Funding offers a wide array of mortgage loan programs and understands how difficult it is for borrowers to find the loan program that is right for them. Our team of mortgage professionals is here to assist you with any questions you may have regarding the USDA loan program or any other program offered. To help get you started, the team at Leaman Team Powered by New American Funding has compiled the ten most frequently asked questions and answers about the Austin USDA Home Loan Program.

What are the benefits associated with Leaman Teams’s USDA Loan Program?

  • There is no set loan limit in which you can borrow

  • Leaman Team Powered by New American Funding does accept self-employed incomes

  • There are no USDA reserve requirements

  • The program is not limited to only first-time home buyers

  • Up to 102% mortgage financing for eligible borrowers in the Austin area and nationwide

  • Our team can guarantee a 30-year fixed rate mortgage for qualified borrowers

  • Credit standards are flexible (FICO score of at least 620+ can qualify)

  • There is no set limit on gift funds or seller contributions

What is the USDA?

USDA stands for United States Department of Agriculture. The USDA makes homeownership a reality for rural American by providing them with numerous homeownership opportunities and home renovation and repair programs. The USDA also assists elderly, disabled, and low-income rural U.S. residents in multi-unit housing complexes by granting them the financing they need to make their rent payments.

What is a USDA Guarantee Home Loan?

USDA Home Loans are insured by the US Department of Agriculture and issued and serviced by a private lender. The USDA partners with private lenders to guarantee home loans to eligible borrowers for the creation of rural multi-family housing units as well as single-family homes. USDA Home Loans provide unique and favorable benefits for eligible borrowers in the Austin area and nationwide.

What are the requirements for a USDA Mortgage Loan?

A few different factors are considered in order to determine whether or not an individual qualifies for a USDA Mortgage Loan. To find out more about the specific requirements, contact an Austin mortgage specialist today by filling out a form on the left or calling (512) 717-4299 or (800) 301-3405.

Are USDA Home Loans only delegated to First-Time Homebuyers?

No, USDA Home Loans are available for all homebuyers. The USDA does not place any restrictions on borrowers who have previously owned a home.

Is a down payment required for a USDA Home Loan?

No, a down-payment is not required because the purpose of the program is to enable qualified borrowers who currently do not have cash on hand. The zero money down feature is just another excellent benefit of this loan program.

Are low-income borrowers the only homebuyers that qualify for the loan program?

No, Moderate-to-Low income borrowers can qualify for a USDA Home Loan.

What properties are eligible for a USDA Home Loan?

Eligible properties must be located in a rural area as defined by the U.S. Department of Agriculture (USDA) and cannot produce an income. Although properties must be owner occupied, the USDA Mortgage Guidelines do permit you to purchase condos, planned unit developments, manufactured homes, and single-family residences.

Is the process for a USDA Home Loan similar to the process for other types of home loans?

From the homebuyer’s point of view, a USDA loan works just like all other home loans. The process typically takes the standard 15-30 days depending on how quickly the appraisal is acquired and the length of time it takes the USDA regional office to approve the loan.

What kinds of loans are offered by the USDA?

The USDA only offers fixed-rate mortgages. With a fixed-rate mortgage, your interest rate will remain the same during the complete loan period, which is typically 30 years. A major advantage of a fixed-rate loan program is that your monthly payment will never change. Therefore, you will know exactly how much to budget for your mortgage payment every month.