Nationwide & Grand Rapids MI USDA Purchase Loans

Learn More About The USDA Rural Development’s Single Family Housing Guaranteed Loan Program and How You Can Get Yours

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What Is The USDA Rural Development’s Single Family Housing Guaranteed Loan Program? Is It Right For You?

HOMETOWN LENDERS, INC. IS HIGHLY TRUSTED BY OUR CLIENTS FOR THEIR NATIONWIDE & GRAND RAPIDS MI USDA Purchase LOANS MORTGAGES

Welcome to HomeTown Lenders. We are A Leading Grand Rapids MI USDA Purchase Home Loans Lender, and for good reason. Operating through our Ridgeland, MS Branch, we have helped many families and individuals in Michigan, Alabama, Arkansas, California, Florida, Louisiana, Maryland, Missouri, Mississippi, New Mexico, Tennessee, Texas, and Virginia achieve their dream of home ownership through high quality Nationwide and Grand Rapids MI USDA Purchase Loans.

The USDA Rural Development’s Single Family Housing Guaranteed Loan Program is designed to help borrowers purchase homes in rural areas. USDA Home Purchase Loans are an excellent benefit for first time home buyers as well as growing families looking to obtain the American dream of home ownership. Borrowers that qualify can purchase a home with no money down, which makes buying a home extremely affordable. In addition, USDA purchase loans also offer very flexible underwriting guidelines, the ability to finance in closing costs and a competitive a 30 year fixed rate option.

Contact our Michigan USDA Home Purchase Mortgage Loan Officers to get prequalified and start your mortgage loan process. 

Why is a USDA Home Purchase Loan A Great Deal?

The USDA still offers 100% financing that makes it the one of the most attractive purchase loans still out in the market, thanks to its overall low cost as well as flexible underwriting process that allows for compensating factors.

All USDA loans are run through an automated underwriting system called GUS (Government Underwriting System) in order to get an approval. In the event your file does not get a full approval through the GUS system, it’s possible for your loan to be manually underwritten by a person who can take certain things into consideration.

For example a high credit score, low debt to income ratio, or even assets can help offset negative factors on your application. A USDA lender may even consider other types of payment history like rent or utilities when making a decision on an approval. This common sense type of manual underwriting can make the difference when it comes time to get approved for your USDA loan. In addition to this, by not having a down payment requirement and being able to finance your closing costs you will literally save thousands at closing.

What About The USDA Funding Fee?

The USDA funding fee is collected by lenders at closing and is financed into the loan which helps offset the cost to fund the USDA program. There is also monthly mortgage insurance on all USDA home purchases.

Your monthly mortgage insurance will be .40% and 2.0% for the funding fee

What Are the Advantages of A USDA Purchase?

  • 100% financing
  • Credit scores down to 580
  • Up to 102% loan to value
  • Manually underwritten loan OK
  • Easy to use gifts for closing costs
  • Allows for 6% seller paid closing costs

What are The Requirements For A VA Purchase

  • Minimum credit score
  • Geographic eligibility
  • Primary residence only
  • Income limit maximum
  • Debt to income ratio cap
  • Single Family Residence

Frequently Asked USDA Purchase Questions

  1. Copy of driver’s license
  2. Copy of social security card
  3. Two most recent paystubs
  4. Two years W2’s or Tax Returns
  5. Fully executed sales contract
  6. Contact information for insurance agent

You can finance some of the closings costs into your new USDA loan. The program also allows for gift funds from family members or friends.

Currently the USDA only offers a 30 year fixed mortgage.

member’s retirement, separation or discharge from active-duty military.

The USAD Purchase funding fee is 2% and can be financed into the new loan if you choose.

Yes, As long as you negotiate the sales contract to include a seller contribution the USDA Purchase Program allows for certain costs to be paid by the seller at closing.

Yes, an appraisal will be required for your new USDA home purchase completed by an independent appraiser.

Currently the USDA Purchase Program is only allowed for primary residential property.

In order for entitlement to be restored, the prior VA loan must be paid in full and the property disposed of. If you no longer own the property, please state as such on your application form 26-1880 and resubmit. Do note that you can obtain a restoration of entitlement without disposing of the property when the loan is paid in full on a one time basis.

Ask your lender to verify all the qualifying factors for you. By simply applying for a USDA home purchase the lender can determine if you qualify or not.

A Diverse and Comprehensive Line of Loan Products to Fit Everyone's needs.

FHA LOANS

Down to a 580 Credit Score

*SPECIAL RESTRICTIONS APPLY

Jumbo
Loans

Down to a 620 Credit Score

VA HOME LOANS

Down to a 580 Credit Score

*SPECIAL RESTRICTIONS APPLY

FHA
203K Loans

Down to a 620 Credit Score

USDA LOANS

Down to a 580 Credit Score

*SPECIAL RESTRICTIONS APPLY

FHA/VA/USDA
Conventional

Manufactured Home
Loans Available

CONVENTIONAL

Down to a 620 Credit Score

Down Payment
Assistance

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Monthly Payment

Principal & Interest $1421

Monthly Taxes $1421

Monthly Insurance $1421

By sending this form to your email you are agreeing to allow us to contact you by email to follow up with you. Call us today to see what programs you may qualify for and today’s interest rates

Hometown Lenders Helping You Achieve Your Dreams

Contact Us Today To Get Prequalified for Your Nationwide And Grand Rapids MI USDA Purchase Loans

We pride ourselves in making your home financing experience as easy and affordable as possible. Our service is second to none.
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FHA, VA, USDA Loans SPECIAL RESTRICTIONS

Special restrictions and guidelines for bad or poor credit.

All loans FHA, VA, USDA:

  1. FHA –  Minimum loan amount 200K
  2. Alternant trade lines ( utility bill, child care, insurance etc) 12 month history no late payments
  3. BK 7 Discharge over 2 years.  BK CH 13 3 years from file date
  4. Foreclosures over 3 years  
  5. Verifiable Rental history 12 months no lates (Cancel checks, money orders or by management company)
  6. 3 Months of reserves ( 3 months payments in reserves . example in bank, 401k etc)
  7. No excessive late payments in the past 12 months
  8. No Mortgage lates

On FHA with Credit scores less than 580

  • 90% LTV(Loan to Value) with 10% Down payment .

On VA with Credit scores less than 580  

  • 3.  100% LTV(Loan to Value) NO Down Payment

 On USDA with Credit scores  of 580-619

  • 100% LTV(Loan to Value) NO Down Payment

Guidelines