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USDA Home Loans

USDA Home Loans – a mortgage from the USDA Loan Program, also known as the USDA Rural Development Guaranteed Housing Loan Program – is a mortgage loan offered to buyers purchasing a rural property. The benefits of a rural development home loan in Oregon and Washington include:

  • No down payment
  • Fixed Interest Rates

Rural Development Loans stipulate that a home must meet certain criteria to qualify for the program. The property must be located in a rural property designated area. This does mean it is a farm property (To view eligible areas, visit the USDA Rural Development’s website at

USDA Home Loan Restrictions

USDA Home Loans have some restrictions. One restriction is Maximum Household Income Limit. The MHIL can vary by the County you purchase a home in. The Income limit for Clack County WA may be different than the income limit for Clackamas County OR. The income limits change annually. The Maximum Household Income Limits are based upon everyone in the home who is a wage earner, even if their income is not going to be used to qualify for the USDA Loan. For instance, a domestic partner who has a job, an adult child who has a job, or an elderly relative receiving social security benefits living in the home, would be considered when determining the maximum household income – even if that person was not planning on being on the mortgage loan. There are deductions however, that USDA Underwriters allow, and often, those calculations may pull a family under the Maximum Household Income Limit.

The appraisal of the property determines the maximum loan amount. This is a stipulation of the USDA Loan-Rural Development program. The borrower may borrow up to 100% of the appraised value for purchase transactions, and 100% for refinance transactions if the guarantee fee is included in the loan amount.

Mortgage Insurance

Like any government backed loan there are specific guidelines to obtain a USDA loan. It could be a great opportunity for you. Your mortgage banker can help you through the entire process. Talk to one of our Senior Mortgage Bankers today to learn more about the process.