Frederick Colorado USDA Mortgage Loans
What is a USDA Loan?
A USDA loan is a zero down residential mortgage program intended for rural areas in the United States. The purpose of the program is to encourage home ownership in rural areas with lower populations.
Great news! The City of Frederick, CO is eligible for USDA financing! Example of a Frederick eligible property below. Please contact us if you have any questions or would like to get approved. We do not have any application or credit report fees.
What are the benefits of a USDA loan?
• 100% No Money Down Home Loans. No need for down payment assistance or other grant programs.
• Very Competitive Interest Rates. More competitive than conventional loans.
• Backed and Secured by the Federal Government.
• Low Monthly Mortgage Insurance Compared to FHA or other Conventional Loans.
• Purchase and Refinance. Buy a new home or refinance your current home.
• Fixed secured loans – 30 year or 15 year fixed rate loans.
How to Qualify for a USDA Loan?
• Income limits are based on County. The City of Frederick is located in Weld County so to qualify for a USDA mortgage, household income needs to stay below these limits.
$94,100 Maximum Yearly Income for 1-4 person household
$124,200 Maximum Yearly Income for 5+ person household
• Credit Score must be 620+. No exceptions to this rule. We use the middle score of all borrowers applying for the mortgage. If you are unsure of what your credit score is, please reach out to us and we can access your credit report together.
• Must occupy the home as your primary residence. Cannot be used for investment property.
• Minimum Loan Amount $50,000 / No maximum Loan Amount – This means you can purchase any home above $50,000 as long as your income allows it.
• No Do not need to be a first time home buyer. You even currently own a home but you must occupy the new USDA purchase as your primary residence.
USDA Eligible Properties
• Single Family Homes
• New construction
• HUD approved Condos
• Town homes
• HUD approved Manufactured homes / Must be on a permanent foundation
• No land loans. Must have a property in place.
Why choose us as your USDA lender?
• We have low mortgage rates. We have some of the most competitive mortgage rates in the State.
• We’re able to help cover your closing costs. Why is this important? Even though USDA is 100% financing, we still need to deal with closing costs. Closing costs can be covered by the seller but in some cases the seller will refuse. We have the ability to give you a lender credit to help pay for some or all your closing costs. This is done by giving you a lender credit in return for a slightly higher interest rate. In reality, our rates are so low that even if you want us to cover the closing costs and take a higher interest rate, we will still be extremely competitive compared to other major banks or Credit Unions.
• Local Denver lender familiar with State guidelines and mortgage programs. We’re right next door to you!
Use the links below to see if you’re eligible for a USDA loan. You can also contact us and we can assist you with your questions and guide you through the process.
Search for Homes – Free no registration required / Connected directly to the MLS
USDA vs FHA vs Conventional(Which is better)
- FHA requires 3.5% down payment / USDA does not require a down payment.
- Although FHA and USDA rates are very similar, USDA has much lower monthly and upfront mortgage insurance. That means your monthly payment will be lower and you will pay a smaller upfront government fee. On a $200,000 home purchase, your USDA payment would be about $50 less. You would also save about $1500 in upfront mortgage insurance fees which will lower your closing costs.
- USDA loans do not have any maximum loan amounts. FHA loan amounts are limited based on individual counties.
- FHA loans do not have limitations on location but USDA is limited to USDA eligible areas only.
- USDA are more difficult to qualify for regarding income and credit. For example, we can do an FHA loan with a 580+ credit score but USDA requires 620+.
- USDA mortgage do have household income restrictions. FHA loans have no income limits.
- Conventional loans might offer better terms if buyer has a high credit score and large down payment.
If you’re looking to buy a home in Frederick, USDA is a great option if your credit score is above 620 and your income is sufficient to qualify for the loan and under the income limits. Give us a call if you have any other questions or would like to get approved before you start looking at homes.