The USDA loan program that we have been using in 2021 is the USDA 502 guaranteed loan.


I want to do a refresher reminder about what the USDA loan is some of the benefits and the requirements the pros and cons and see if it’s a great home loan.

If you’re trying to buy a home so the USDA loan is the united states department of agriculture now it’s not a farm loan.
There are farm loans that are available for commercial loans for farm and ranch and agricultural purposes but this is a residential loan.

This is the guaranteed loan there are two different types of USDA loans for residential.

There’s the direct loan that’s directly through the federal government and then there’s the guaranteed loan this is actually through a USDA approved lender like us.

The lender we’ll make the loan to you but USDA will guarantee the loan and it’s a Great program it’s one of my favorite home loan programs a lot of lenders don’t like to do USDA because there’s more legwork on the lender.

I loved USDA when I started selling real estate.

I was doing a ton of USDA loans because all these people would call me and want 100% financing they tell me that their lenders don`t want to do the USDA loans.

It`s a great benefit for the buyer to get a low rate no money down loan what else could you want so it’s a pretty cool program and it does have some very specific requirements and so we’re going to talk about that today because it could work in your area the USDA is available nationwide.

The biggest thing that I want to add to the USDA alone is that it’s really for you. It can be used for brand new construction where the builder builds the house not where you do the construction loan as the consumer but the builder like you take your loan approval to Dr. Horton or Ryan homes or KB homes and have them build a home for you in their development or if you own raw land the builder can build a construction loan and then once the house is completed.

We can give you the permanent funding with the USDA you can also use it for existing construction existing homes or pre-owned homes so you don’t have to be a first-time buyer with the Usda which is cool a lot of people think it’s only for first-time buyers you do not have to be a first-time buyer so and in fact, you can get a USDA loan even if you currently own home if you’ve been transferred from your job to another location you can keep your existing home and lease it out or if your home that you live in currently is no longer habitable.

The USDA will allow you to keep your existing home and then get another home or if you’ve had an increase in family size and now your current home is too small and you need a bigger home the USDA will also allow you to do that too so great things about the USDA the first thing that’s awesome about the program it’s no money down 100 financings so it’s a true 100 financing loan there is no down payment so you don’t have to put a down payment 3.5% like with FHA.

So it’s cool because you know where else can you get a zero down loan only other zero down loan VA zero down but you have to serve in the military with the USDA you don`t have to serve in the military okay so you could be just a general civilian like me and get a USDA loan assuming that you meet the other requirements so it is available nationwide.

Which is nice so you can be in Texas, Florida, and California wherever and but the biggest things that are important to the USDA there’s a few of them.

The first thing is there are location restrictions the USDA obviously in its name is the department of agriculture so you have to kind of understand it’s not for major metropolitan cities guys so you can’t use this like in Dallas, Miami, Los Angeles, Houston right New York City.

It’s not available in those type of areas so it’s only available on the outskirts of major metropolitan cities is completely rural areas.

Generally populations under 20,000 for a city are on the hubs of the outside of a major city.

Donald Trump the billionaire cant get a USDA loan, unfortunately, it doesn’t work like that because obviously, it’s zero down 100 financing so there are income restrictions.

The Van Mill Group

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