MORTGAGE LOANS

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USDA LOAN

The USDA Home Loan, or rural development loan, is a low-interest government-sponsored mortgage available for designated rural and suburban areas. 

The USDA Loan is a 0% down payment mortgage designed to help low- to moderate-income households purchase, build, rehabilitate, or improve a home. To qualify for a USDA loan, you must purchase a home in a USDA-approved area and meet certain income requirements.

CMG Financial has been named a Best USDA Mortgage Lender by Business Insider.

Best USDA Lender


USDA Loan Eligibility 

To apply for a USDA Loan, you must have: 

  • Proof of citizenship (or legal permanent residency)
  • A minimum credit score of around 640 (credit score requirements might vary per borrower)
  • A debt-to-income (DTI) ratio of 41% or less 
  • Have an income no higher than 115% of the median household income in your area
  • Be financing a primary residence in a USDA-approved location


USDA Loan Credit Score Requirements

Unlike FHA Loans – which allow for a minimum credit score of 500 – USDA Loans require a higher qualifying credit score. Though credit score requirements may vary per borrower situation, most lenders are looking for a FICO® credit score around 640.


USDA Loan Down Payment Requirements

USDA Loans are one of two major mortgage products that offer 100% financing — meaning that no down payment required. Down payments are one of the biggest hurdles to homeownership. For example, 3.5% down payment for an FHA Loan for a $300,000 home would be $10,500. With the option to put no money down, the USDA Loan can help you purchase your home sooner. 


USDA Loan Debt-to-Income Ratio (DTI) Requirements

Strive for a DTI no higher than 41% when applying for a USDA Loan. Your DTI is your total recurring monthly debts (student loans, credit card payments, etc.), divided by your monthly pre-tax income, expressed as a percentage.  For example, if your rent is $1,000 per month, your car payment is $500 per month, and your monthly credit card payment is $800, your total monthly debt is $2,300. If your gross income is $6,000 per month, then your DTI is roughly 38% (2,300 ÷ 6,000 = 38.3).


USDA Loan Income Eligibility

USDA loans are only available for low- to moderate-income households. To be eligible for a USDA loan, your income must not exceed 115% of the median household income in your area. You can check USDA Loan income limits here.


Mortgage Insurance for the USDA Loan

There is no mortgage insurance requirement for USDA Loans. 


Properties Eligible for a USDA Loan

Eligible USDA properties are single-family, primary residences located in designated rural or suburban areas. You can locate USDA eligible areas by searching the USDA loan eligibility map. There is no maximum purchase price or acreage limit, however all residences must meet HUD’s minimum requirements. 


How to Apply for a USDA Loan

To apply for an USDA mortgage you will need to provide the following:

  • Proof of income and employment (pay stubs, tax returns, W-2 statements etc.)
  • Proof of citizenship and home location
  • Documentation of financial assets (bank statements, etc.)
  • Residential history (previous two years’ worth)
  • Your credit history (it’s also a good idea to check your credit report - not score - here)
  • Identity information like your driver’s license, Social Security card, and date of birth in order to apply

To start your USDA Loan application and get preapproved click here, to find a local loan officer click here.

If you have questions and want to speak to someone right away, give us a call at 833-362-0619.

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CONVENTIONAL LOAN

With low down payment options available

CONVENTIONAL

FANNIE MAE HOMEREADY

Flexible funding with down payments as low as 3%

CONVENTIONAL

FREDDIE MAC HOMEPOSSIBLE

More possibilities with down payments as low as 3%

GOVERNMENT

FHA LOAN

Available with down payments as low as 3.5%

GOVERNMENT

VA LOAN

100% financing for eligible Veterans, Reservists and Active Duty Personnel

GOVERNMENT

USDA LOAN

Available in designated rural and suburban areas

GOVERNMENT

203K RENOVATION LOAN

Turn the house you like into the home you love

SPECIALTY

JUMBO LOAN

A loan for every lifestyle

SPECIALTY

ALL IN ONE LOAN

Get financial flexibility and pay off your home loan faster

SPECIALTY

HOMEFUNDIT

Gifts from family and friends fund your down payment