Dacono Colorado USDA Loans

Dacono Colorado USDA Guaranteed Loans

What is a USDA Loan?

A USDA loan is a zero down payment 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 Dacono, CO is eligible for USDA financing! Example of a Dacono eligible property below. Please contact us if you have any questions or would like to get approved. 

Dacono CO USDA property example

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.

• Not required to be first time home buyer / Can currently own a home but must occupy new home as primary residence. 

 

How to Qualify for a USDA Loan?

• Income limits are based on County. Dacono, CO is located in Weld County so household income needs to stay under 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 580+. No exceptions to this rule. We use the middle score of all borrowers applying for the mortgage. If you are unsure of your credit score, please contact us and we can access your credit report together.

• Must occupy the home as your primary residence. Cannot be used to purchase 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.


 

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.

Search for properties – No need to register / Connected directly to the MLS

 

Why choose us as your USDA lender? 

• 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. Sometimes 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. 

 

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 Eligibility 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/ Conventional requires 3% 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-$80 less. You would also save about $1500 in upfront mortgage insurance fees which will lower your closing costs.
  3. USDA loans do not have maximum loan amounts. FHA loan amounts are limited based on County limits.
  4. FHA loans don’t have limitations on location but USDA is limited to eligible rural areas only.
  5. USDA mortgages are more strict than FHA regarding income and credit. 
  6. USDA mortgages have household income restrictions. FHA and conventional loans do not have income limits.
  7. Conventional loans might offer better terms if buyer/homeowner has a high credit score and large down payment.

If you’re looking to buy or refinance a home in Dacono or a surrounding area, USDA may be a great option if your credit score is above 620 and your income is sufficient to qualify for the loan. Give us a call if you have any other questions or would like to get approved before you start looking at homes.

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