MORTGAGE LOANS

See which loan program is best suited for you and your family.

CMG Image

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 620 (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

The USDA loan has no minimum credit score requirement; however, most lenders look for a FICO® credit score of at least 620.  For those with lower credit scores, a USDA loan may still be possible with manual underwriting, depending on other individual financial circumstances.


USDA Loan Down Payment Requirements

USDA Loans are one of two major mortgage products that offer 100% financing — meaning that no down payment is required. 


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. To check your USDA income eligibility, visit the USDA website.


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 1.805.302.5160.

icon

Who Can Qualify?

Primary residence only, first-time and repeat home buyers are allowed
icon

Down Payment Requirements

100% financing available
icon

Location Limitations

Designed for homes in rural and some suburban communities
icon

Fixed Rate

30-year term available

Who Can Qualify?

Primary residence only, first-time and repeat home buyers are allowed

Location Limitations

Designed for homes in rural and some suburban communities
icon
icon
icon
icon

Down Payment Requirements

100% financing available

Fixed Rate

30-year term available
CONVENTIONAL

CONVENTIONAL LOAN

With low down payment options available

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

SPECIALTY

JUMBO LOAN

A loan for every lifestyle

SPECIALTY

ALL IN ONE LOAN

Get financial flexibility and pay off your home loan faster

GOVERNMENT

203K RENOVATION LOAN

Turn the house you like into the home you love

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%

SPECIALTY

HOMEFUNDIT

Gifts from family and friends fund your down payment

GOVERNMENT

REVERSE MORTGAGE

Available for homeowners ages 62+

SPECIALTY

HELOC

Turn your home equity into cash in as little as 5 days

SPECIALTY

CMG COMMUNITY ONE GRANT

Purchase a home within a specific zip code with as little as 1% down payment.

GOVERNMENT

FANNIE MAE HOMESTYLE® RENOVATION

Low down payments, big possibilities.

CONVENTIONAL

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

GOVERNMENT

REVERSE MORTGAGE

Available for homeowners ages 62+

GOVERNMENT

FANNIE MAE HOMESTYLE® RENOVATION

Low down payments, big possibilities.

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

SPECIALTY

HELOC

Turn your home equity into cash in as little as 5 days

SPECIALTY

CMG COMMUNITY ONE GRANT

Purchase a home within a specific zip code with as little as 1% down payment.