USDA Home Loans | OVM Financial - Lending Redefined

USDA Home Loan Program

Quick Facts

  • No money down
  • No mortgage insurance
  • Seller paid closing costs
  • Flexible credit criteria
  • No maximum purchase price

Rural Housing Loans are offered in conjunction with the U.S. Department of Agriculture (USDA). To take advantage of this loan the subject property must be located in a designated rural area, identified by USDA Rural Housing.  Typically, rural areas are towns with less than 20,000 residents that are removed from urban areas.

USDA Home Loans provide 100% financing for a home purchase or refinancing in a USDA designated rural area. Our team has many years of USDA experience to help you get into the home of your dreams!

  • Borrower can only own one property at a time using USDA unless the borrower is underwater and home cannot be sold on the current market.
  • Approval and income restrictions are limited to automated underwriting by the Guaranteed Underwriting System (GUS).  There is no set income ratio- GUS makes that determination
  • Client cannot purchase property within 3 years of foreclosure
  • VOR must be perfect depending on credit history
  • Co-Signers are eligible
  • Minimum credit score is 640

Frequently Asked Questions

1Is there PMI on a USDA loan?
USDA Mortgages do not have PMI, but instead have a monthly premium that is calculated into the payment. However, the good news is that on a USDA loan, this monthly fee is currently over 3X LESS than the monthly PMI on an FHA mortgage.
2Do you pay mortgage insurance on a USDA loan?
USDA loans currently don't require mortgage insurance premiums. They require only an upfront guarantee fee of 3.5 percent of the total mortgage amount. The one-time fee is added to the total balance of the mortgage and financed into the loan.
3What is a garuntee fee on a USDA loan?
As a real-life example : A homebuyer with a $100,000 loan size in Blacksburg, Virginia, would be required to make a $2,000 upfront mortgage insurance premium payment at closing, plus a monthly $33.33 payment for mortgage insurance. USDA upfront mortgage insurance is not paid as cash.

Loan Program Resources

Download USDA Loan Fact Sheet

Download Loan Fact Sheet


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