Rifle, Colorado USDA Loans

Rifle, Colorado USDA Loans

What is a USDA Loan?

A USDA guaranteed 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 Rifle, Colorado is eligible for USDA financing! Example of a Rifle 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.

Rifle CO USDA eligible property

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. Rifle, CO is located in Garfield County so household income needs to stay below these limits in order to qualify for a USDA mortgage.

$89,550.00 Maximum Yearly Income for 1-4 person household

$118,200 Maximum Yearly Income for 5+ person household

• Credit Score must be 580+. 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.

• You DO NOT need to be a first time home buyer but must occupy new home as your primary residence. You can own multiple properties at the time of purchase. 


 

USDA Eligible Properties

• Single Family Homes

• New construction

• Duplex

• HUD approved Condos

• Town homes

• HUD approved Manufactured  homes / Must be on a permanent foundation

• No land loans. Must have a property in place.

• Storage buildings/workshops are acceptable

• There is no maximum acreage limit. Property must be typical for the area AND the value of the land should not exceed 30 percent of the property value. 

• No income producing properties. Home based businesses are okay. 

• Farms not allowed but farm animals are okay as long as not for income producing purpose

• The guaranteed USDA program is not intended to purchase land on its own

Find Properties – Free property search / No registration required / Connected directly to the MLS

Why choose us as your USDA lender? 

• We have incredible low mortgage rates. We have some of the most competitive mortgage rates in the State.

• We DO NOT sell your information to a million other lenders. We are an actual lender who originates USDA loans in Yuma, CO. 

• We are 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. 

• Local Denver lender familiar with State guidelines and mortgage programs. 

Eligibility links

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.

USDA Income Eligibility Calculator
USDA Property Eligibilty Map
Colorado USDA Website
USDA Fact Sheet

USDA vs FHA vs Conventional (Which is better)

  1. FHA requires 3.5% down payment / USDA does not require a down payment.
  2. 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.
  3. USDA loans do not have any maximum loan amounts. FHA loan amounts are limited based on individual counties.
  4. FHA loans do not have limitations on location but USDA is limited to USDA eligible areas only.
  5. 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+.
  6. USDA mortgage do have household income restrictions. FHA loans have no income limits.
  7. 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 Rifle, USDA may be a great option if your credit score is above 580 and your income is sufficient to qualify for the loan and under the income limits. Give us a call if you have any questions or would like to get approved before you start looking at homes.

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