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USDA Loans: What You Need to Know


Looking to buy a home in a rural area? If you want to live in a place that offers some breathing room, you may find that you’ll be eligible for a USDA loan.


What is it?

A USDA loan allows for a zero-down mortgage for buyers in certain rural and suburban areas. The loans are backed by the U.S. Department of Agriculture, which has invested billions of dollars to help families buy and improve their homes.


USDA loan eligibility

To qualify, you need to meet certain household income guidelines — and the home you’re buying needs to be in a “rural” location, as defined by the USDA. Right now, there are plenty of qualifying locations throughout the Michiana area.


Private mortgage insurance is often required, but you could receive 100 percent financing if you’re unable to make a down payment.


Key benefits of a USDA loan

So — why consider a USDA loan? Here are a few reasons:

  • There is no required down payment, so even if you can’t save money ahead, you could still get into your own home
  • Interest rates are competitive, and guaranteed by the U.S. government
  • Credit guidelines are flexible; if you’ve experienced a financial hardship, you may still qualify for a loan — as long as you can demonstrate a stable income now
  • There is no minimum purchase price, so you can choose a home you can afford to stay in for a long time


Want to know more?

If you’re looking for a home, but aren’t sure you can make a significant down payment, talk to us at Horizon Bank! We can help you determine whether a USDA loan may be right for you — and you can work with a realtor of your choice to find a qualifying home.



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