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USDA Home Loans in Colorado

USDA loans offer borrowers special down payment and credit requirements when buying a home in a USDA-eligible area.

What is a USDA Loan?

Backed by the U.S. Department of Agriculture, USDA loans are available to low-to-moderate-income home buyers who are purchasing a home in a USDA-eligible area. The USDA backing provides lenders a safety net in case the borrower defaults on the loan, which affords eligible borrowers 100% financing and low interest rates. With no required down payment, USDA loans allow many people access to home ownership who otherwise would not have been able to purchase a home.

Property Eligibility

Many people think that USDA-eligible properties are constrained only to farming areas, but that actually isn’t the case. The USDA defines a rural area in much broader terms. It may surprise you to hear that approximately 97% of land in the United States qualifies for a USDA loan, including some suburban areas. You can check if a property is eligible on the USDA’s website.

Qualifying for a USDA Loan

In addition to purchasing a home in a USDA-eligible area, borrowers must meet minimum credit score requirements and meet income limits for the area. Income limits are set at 115% of the median income for that geographic region. Additionally, to qualify for a USDA mortgage, the property must be used as a primary residence, and the borrower must be a U.S. citizen, U.S. non-citizen national, or qualified alien.

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