USDA Loans From The Experts

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USDA Loans Rapid City

If you are considering purchasing a property in a rural area, then a USDA loan could be for you. The U.S. Department of Agriculture backs USDA loans as part of its USDA Rural Development Guaranteed Housing Loan program. These loans are designs for low-to-moderate-income buyers and were created to help encourage homeownership in rural areas. 

The knowledgeable lenders at Affiliated Mortgage are happy to help you determine if a USDA loan is a good fit for you.

How do USDA loans work?

The USDA program is a recent addition, as it was launched in the ’90s. The goal of USDA loans is to stimulate economic growth and homeownership in less-populated areas. Since the U.S. Department of Agriculture backs USDA loans, mortgage lenders can offer competitive interest rates and even zero-down home. In some cases, the USDSA loan requires no down payment and allows the buyer to finance 100% of the property value. 

However, USDA loans have certain income requirements for each county. The property must be in a qualified “rural” area and the buyer must meet income caps for that area. Generally, any place with a population of 20,000 or less can quality, and this includes 97% of the US map. Additionally, the home must be your primary residence, and the buyer must meet the USDA”s ability to repay standards. 

USDA loans for first-time homebuyers

For first time buyers looking in “rural” areas, the USDA loan is very attractive. Since you can put $0 down, you are not required to finance a large down payment, which is a major obstacle for many first time home buyers. Since the USDA guarantees a portion fo the loan against default, the lender can provide more lenient eligibility requirements and appealing rates/terms. Additionally, the annual guarantee fee is much lower than with an FHA loan. 

While USDA loans are an attractive option for many buyers, it is hard to know if you qualify for this type of loan. To find out more about USDA loans and determine if you and your family quality, contact one of our experienced Affiliated Mortgage lenders today. 

Learn How The Mortgage Process Works And The Types Of Loan We Offer You

Loan application. Time est: 30 min
Get Pre Qualify
Get a pre approval. Time Est: 2-24 hours
Discover your best loan fit with your loan officer. Time Est: 30 minutes
1 Conventional
2 FHA Loans
3 VA loans
4 USDA Loans

Technically speaking, a conventional loan is any mortgage that is not guaranteed or insured by the US government, such as VA, FHA and USDA. Conventional mortgages include portfolio loans, construction loans, and even subprime loans. Property types include 1-4 unite properties, manufactured homes on their own land, condos, and town homes.

FHA loans typically offer options for first-time home buyers, senior citizens and home improvements. If you are a first-time home buyer, an FHA loan may allow you to make a down payment of 3.5% (ie. You don’t have to save up too much money for a down payment). Because FHA loans are insured, lenders can and do offer FHA loans at attractive interest rates and with more flexible qualification criteria. If you are interested in a home that requires some improvements, there is an FHA loan to address your needs.

VA Loans in South Dakota and Wyoming are made to fit the unique needs of Veterans, current military personnel, and in some cases, spouses of veterans or current military personnel. A VA Mortgage differs to some degree from a standard mortgage. While provided through Affiliated Mortgage, the loan is guaranteed in part by the Department of Veterans affairs. Those eligible for VA loans can have little or even no down payment. There are a few special considerations for a VA Loan: good credit and enough funds for payment are among them.

USDA Loans, commonly referred to as Rural Development loans provide borrows with a variety of attractive benefits if the subject property falls within the USDA RD Home Loan Footprint. USDA loans require no down payment and borrowers may finance up to 100% of the property value. While these loans are attractive, you must meet income restrictions for the county in which your new home is located. Each county has a maximum income requirement however the USDA Home Loan Program does allow for certain considerations. One of the final primary criteria’s is that the property be an owner occupied property, investment properties are not eligible.

Negotiate your future hoме. Time est: 2-5 days.

a- Find with help of your real estate agent the best-fit house for your needs and upon your choice, decide the terms you want to negotiate into your purchase contract. These may include: price, closing cost, and closing date.

b- Execute a contract: all parties sign the final contract to set the purchase in motion.

c- Deliver a fully executed purchase agreement to your loan officer.

Home inspection. Тime est. 48 hours

This is an optional step in which a home buyer can hire an independent inspector to view the home and make sure there aren’t any issues with the integrality of the home before fully committing to buy the house.

Documentation. Est time: 7 days.

a- Your loan officer prepares your loan documents for signatures.

b- A full loan package is submitted for processing.

Appraisal (2 Weeks).

A licensed appraiser will conduct a review of your new home’s value, make sure that there is sufficient collateral to support the mortgage and that the house is in adequate condition for the loan

Processing Time est: 5 days.

Affiliated mortgage’s processing team will double-check your documents and make sure your file is complete. At this time a conditional loan approval is issued.

Clear To Close Time Est: 3 days

a- The title company and Affiliated Mortgage will collect all the invoices for the services provided during the loan process.

b- The title company will coordinate a time to meet with the new home owner, your loan officer, and realtors to execute the final mortgage and pertaining documents.

c- The title company then takes the money funded by Affiliated Mortgage and pays out all outstanding balances. Then, the title company gives the homeowner a clear title to their new home.

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