USDA Home Loans

[Jeff Haak]

Hi everyone.  I was wondering if anyone has used a USDA home loan to purchase a property?  If so, how was your experience?  Would you recommend a first time home owner pursuing this route for financing?

Thanks.

[Phil G.]

Many of my flips were purchased by buyers with RD loans and I've sold some houses to clients who used the RD guaranteed loan program.  If cash for a down payment is an issue, and your income is below the cap, it's a great program.   With a seller contribution toward closing costs, I've seen people walk from the closing table, without putting up any money at all.

The eligibility maps are changing as of 10/1, so be sure the area(s) you are interested in living in are still covered.    Days to close can be a little longer than conforming loans, depending on the USDA region, though some new underwriting procedures being rolled out may help with that.  The longer closing date can be a disadvantage with some sellers in a competitive situation.