EST. 2024 — MODERN LENDING
USDA Home Loans
A government-backed, zero-down-payment mortgage program designed to help low-to-moderate-income buyers purchase homes in designated rural and suburban communities.
Is a USDA loan right for you?
The USDA Mortgage is meant to spur homeownership in pre-designated rural and underdeveloped areas. Take advantage of a 0% down-payment with this program!
Benefits of a USDA loan
- 100% financing: That’s right! This program offers 100% financing for qualifying members.
- First time buyer friendly:Â USDA Rural Loans can be used by first-time buyers and repeat home buyers alike.
- No homeowner counseling required: Unlike some other mortgage programs, the USDA program doesn’t require a homeowner counseling course to qualify.
USDA loan eligibility requirements
- Ability to prove creditworthiness, typically with a credit score of at least 640
- Stable and dependable income
- A willingness to repay the mortgage – generally 12 months of no late payments or collections
- Adjusted household income is equal to or less than 115% of the area median income
- Property serves as the primary residence
- Property is located in a qualified rural area
Check out what your monthly payment could be by using our USDA Mortgage Calculator...
Our mortgage calculators are for demonstration purposes only and may not reflect actual numbers for your specific mortgage. Contact us and we will walk you through the best possible mortgage scenario for your specific needs!
Principal & Interest (P&I)
$
Annual Guarantee Fee
$
Taxes & HOA
$
Homeowners Insurance
$
Purchase Price
Home Value
$
- Down Payment
$
Current Mortgage Balance
$
+ Cash Out
$
+ Upfront Guarantee Fee
$
Total Loan Amount
New Loan Amount
$
Home Equity After Cash Out
$
Upfront Guarantee Fee
$
Estimated Taxes & Insurance
Property taxes are generally estimated to be 1.2% of the home's value, but may vary based on your location. Annual homeowners insurance is roughly 0.35% of the home's value but can change based on insurer. Your loan specialist can help you determine property tax and insurance rates in your area.
Annual Guarantee Fee
The USDA Annual Fee is 0.35% of the loan amount and is paid to the USDA to compensate mortgage lenders should a mortgage go into default. This fee is paid at closing and borrowers typically choose to finance it into the loan. The USDA Annual Fee is lumped into your monthly payment and is paid for the life of the loan.
USDA Funding Fee / Upfront Guarantee Fee
The USDA Funding Fee or Upfront Guarantee Fee is paid to the USDA to help fund the program. The USDA Funding fee is paid at closing and typically financed into the loan. The USDA Funding Fee is 1.0% of the total loan amount.
Amount Financed
Purchase Price (-) Down Payment (+) Upfront Guarantee Fee
Estimated Payment
$ /mo
Loan amount
$
Down payment
$
Cash Out
$
Home Equity After Cashout
$
Interest rate
Loan term
Taxes & insurance included?
Property tax
Homeowner's insurance
$
Upfront guarantee fee
$
Annual guarantee fee rate
$
Annual guarantee fee
$ /mo
HOA dues
$
Payment Breakdown
Amortization
Principal vs. Interest
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: $$240,000 (the amount borrowed)
- Interest payments: $$297,554 (the cost of borrowing)
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No matter what your situation is, there is a home financing solution for you. We are ready to guide you through your options and get you the best deal possible! We specialize with non-traditional buyers, investors, and entrepreneurs.
INVESTOR FOCUS
01
DSCR
Designed for real estate investors, this program qualifies borrowers based on the rental income generated by the property rather than personal tax returns or employment history.
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NO TAX RETURNS
02
Bank Statement Loans
Ideal for self-employed individuals, this program uses 12 to 24 months of personal or business bank statements to verify income, bypassing the need for W-2s.
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BUSINESS OWNER
03
Self-Employed / Entrepreneur Loans
Flexible financing solutions tailored specifically for business owners, independent contractors, and freelancers whose unique financial structures require alternative income verification.
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NON-TRADITIONAL
04
Non-QM
A versatile alternative lending solution for borrowers with unique financial situations, allowing for flexible qualification guidelines outside of standard conforming rules.
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POPULAR CHOICE
05
Conventional
The most common traditional mortgage option, offering competitive rates and flexible terms for borrowers with stable income and strong credit scores.
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FIRST-TIME BUYER
06
FHA
A government-backed loan designed to make homeownership accessible, featuring lower down payment requirements and more flexible credit guidelines for buyers.
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VETERAN BENEFIT
07
VA
An exclusive, zero-down-payment mortgage benefit provided by the government to honor and support active-duty service members, veterans, and eligible surviving spouses.
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PREMIUM
08
Jumbo
Specialized financing designed for luxury homes or high-value properties that exceed the standard conforming loan limits established by Fannie Mae and Freddie Mac.
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FIXER UPPER
09
Renovation
A convenient all-in-one loan that combines the purchase price or refinancing of a home with the funding needed to cover upgrades, repairs, or major remodeling projects.
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RURAL LIVING
10
USDA
A government-backed, zero-down-payment mortgage program designed to help low-to-moderate-income buyers purchase homes in designated rural and suburban communities.
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