Rural Development/USDA
USDA/RD loans are loans guaranteed by the United States Department of Agriculture. This guarantee enables lenders to provide borrowers with low to moderate incomes mortgages without a down payment requirement and lower interest rates. USDA offers this program to encourage homeownership and economic development in rural and some suburban areas.
Sometimes good credit and a steady income are not enough to qualify for a home loan at a commercial lending institution, such as a bank or savings and loan. However, more rural families and individuals may be eligible to become homeowners with the help of a USDA-guaranteed home loan. So, if your home is in an eligible area, it’s worth exploring a USDA-guaranteed loan. We have a designated in-house USDA underwriter who helps make this process quick and easy.
- Competitive Rates
- No Down Payment Required
- 30-Year Fixed Rate
- 100% Loan to Value
- Finance Closing Costs – if the market value is sufficient
- Seller/interested party contributions up to 6%
- No limit on gift funds
- No Maximum Loan Amount – based on repayment ability of applicant
- No Reserve Requirement
- Must be located in a rural area
- Not limited to First-Time Home Buyers
Designated rural areas in Rhode Island include portions of:
Newport, Middletown, Portsmouth, Providence County, Fall River, Westerly, Hopkinton, New Shoreham (Block Island) for more locations, contact your USDA loan specialist.
A USDA loan has many benefits, including less stringent credit score guidelines and no down payment requirements. In addition, there is no formal loan limit. As a result, this program is well suited for homebuyers on a budget who are flexible about where they live. The only downside to this program is that you have restrictions about where you live and how much money you make to be eligible. To learn more about this program, contact our loan professionals for a consultation.
