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USDA Rural Home Loans are extremely popular loans in suburban Lane County Oregon in towns like Creswell, Cottage Grove, Junction City and Oakridge.  Primarily because it allows home buyers in qualifying areas to purchase a home with absolutely zero down payment and without the added expense of monthly mortgage insurance. In most cases, the USDA Rural Home Loan is the least expensive loan to obtain and to maintain. There are two types of USDA Rural Home Loans:

1. Guaranteed USDA Rural Home Loan
2. USDA Direct Home Loan

Let’s look at the Guaranteed USDA Rural Home Loan first. It allows you to buy in a rural designated area and has a higher income limitation than the USDA Direct loan. It allows for applicants to have a Qualifying Income of up to 115% of the area median household income. There are adjustments that can be made to your Qualifying income. All of our Guaranteed USDA Rural Home Loans are based on 30 year fixed rate loans that carry similar interest rates to an FHA Home Loan.

The USDA Direct Loan is not as common as the Guaranteed USDA Rural Home Loan. One reason is that they carry very strict income limitations for qualifying applicants. You must have a low income (80% of the area median household income) in order to qualify. Applicants also must be without adequate housing and be able to afford the housing payment including taxes and insurance, which can be up to 26% of the applicant’s monthly income.

If you are a low income family with an interest in the USDA Direct loan, you can get more information from the USDA here.

To apply for a Guaranteed USDA Rural Home Loan click on the Get Started tab above or click here. You can also ask a question about Guaranteed USDA Rural Home Loan on Get Started tab. You can also give me (Fred Chamberlin) a call today at 541-342-7576/541-221-3455 cell or make an appointment to see me at the office, Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail me. I am here to answer your questions about the USDA Rural Guaranteed Home Loan program.