USDA Loans

Utah Mortgage is proud to be able to offer USDSA Loans.  Rural Housing, or Section 502 loans are a great way for lower-income families, or individuals wishing to live outside the city limits to obtain financing for a new home.

Key benefits of USDA Loans:

  • NO DOWN PAYMENT! Rural housing loans provide 100% financing for individuals who are eligible participants.
  • No requirement to be a “first-time homebuyer”
  • Less up-front cash-to-close requirements for this program versus conventional or FHA insured mortgages.
  • 100% gifting accepted from a disinterested third party.
  • There is no monthly mortgage insurance required.
  • Closing Costs may be financed up to 100% of the appraised value.
  • Repairs may be financed based on an as-improved value. (Held in escrow if not completed prior to closing at 150% of the repair cost)
  • One time Guarantee Fee may be financed into the loan, even if it is above the appraised value.
  • Loans are 30 year fixed rate
  • There is no maximum loan limit.  Loan limits are dictated by a loan applicant’s income with respect to program eligibility.
  • No maximum on seller contributions.
  • Utah Mortgage accepts Credit scores as low as 620.
  • Manufactured Homes are accepted in approved areas.
  • Condos acceptable in approved areas

Utah Mortgage is able to work with those “harder files” in part because we have USDA approved underwriter in-house, as well as an open line of communication with USDA.  If you have a loan that has been denied somewhere else let me take a look at it, and we can see if we can make it work.

Please feel free to contact me with any questions.

Ryan Verno

Mortgage Loan Officer

The following link will take you to USDA’s Income eligibility website

http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do

To see if a property is located in a USDA approved area, follow this link.

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do