USDA Loans

USDA Loans for Colorado. Taylor Mortgage Group wants all potential home buyers to be aware of the opportunity to obtain Colorado mortgage loans from the United States Department of Agriculture or USDA.  Its Rural Development program offers USDA home loans for real estate purchases in small cities and rural areas throughout Colorado and the nation.

USDA loan program offers home buyers financial resources when they purchase Colorado homes or properties.  Using USDA mortgages, borrowers find relief from needing to ask family and friends to pay closing costs and other unexpected fees.

Certain restrictions are important considerations to determine which properties and home buyers may qualify for USDA home loans in Colorado.

 Benefits of the USDA Guaranteed Rural Housing Program:

• Provides 100% loan-to-value financing for existing homes or new construction based on appraised value.
• No requirement to be a “first-time” home buyer.
• Available to low and moderate-income rural households.
• Less up-front cash-to-close requirements for this program than for conventionally insured or FHA loans.
• Fully amortized 30-year fixed-rate loans.
• No penalty for pre-payment.
• No maximum loan limit. Loan limits are dictated by the applicant’s income with respect to program eligibility and loan repayment ability. Previous ties to FHA loan limits have been eliminated.
• For depository institutions, USDA GRH loans provide opportunities to meet Community Reinvestment Act (CRA) goals.

Property restrictions

• The property must be located in a rural area.  For the purposes of the USDA loan, the home may be in an open country area or in a city with a population under 10,000 residents.  On occasion, the local USDA Rural Development field officers are able to make exceptions in cities with populations under 25,000 residents.
• The home needs to meet state and local home-standard requirements to qualify for the USDA home loan products.  For example, the foundation and framing must be solid.
• Inspections are required for older homes as well as homes that are less than a year old.
• For new construction the builder must provide a certificate of occupancy and a one-year guarantee on the home.

Borrower parameters

• The borrower must be a citizen of the United States, a non-citizen National, or qualified Alien.
• The borrower may not own a home within commuting distance of the property and must live in the USDA-financed home on a permanent basis.

Financial limitations

• Each borrower must be unable to qualify for a traditional home loan, for example must not have enough in their account for the required 20-percent down payment.
• USDA home loans require satisfactory credit history, payment history, and maximum 41 percent debt-to-income ratio.
• Total amount of loan payment, taxes, and insurance may not exceed 29 percent of gross monthly income of the household.
• Income restrictions apply in certain geographic locations.  The income strength of the entire household – all persons who will be living in the home – may also be factored in to the qualifications of an applicant.

 

Are you Looking for a USDA Loan in Colorado?

Taylor Mortgage Group is a mortgage broker that offers a variety of loan products and rates with some of the largest and best investors. A pre-qualification process can be helpful in structuring your final goal. One of the most important steps in purchasing a real estate is to be pre-qualified. An accurate credit report is a useful tool in assessing your lending options. Call: Taylor Mortgage Group at 303-339-5950 or Janie Taylor directly at (303) 884-9393.