USDA Loans

Find out how leveraging a USDA loan can open the door to homeownership with unique advantages and supportive terms for buyers.

When city life is just not for you, a USDA loan could be your solution.

Despite its conveniences, sometimes the hustle and bustle of city or suburban living can be stressful. We get it—the fast-paced life isn’t for everyone, and that’s okay! But did you know that if you’re currently searching for a home, a USDA home loan could help you find your dream getaway in the countryside?

At Luminate Bank, we make it our priority to guide you through the best financial decisions, all with your interest in mind. It’s our goal to help you feel informed and engaged throughout the entire lending process. Let us light the way to homeownership for you.

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What is a USDA Loan?

A USDA loan—also known as the USDA Rural Development Guaranteed Housing Loan Program—is a mortgage loan option offered to rural property owners by the United States Department of Agriculture. This loan option is great for anyone living in the rural areas of the United States that may have a lower income.

Why? Well, because these loans are backed by the U.S. Department of Agriculture, a USDA home loan is available to homebuyers with low-to-average income for their area. These loans even offer 100% financing with reduced mortgage insurance premiums and below-market mortgage rates!

What does that mean for homebuyers?

Depending on your location, there are going to be certain income limits for the area you’re looking to purchase a home in. You can always check out this map and table on the USDA website for more information, or talk to one of our experts here at Luminate.

What Are the Benefits of a
USDA Loan vs. Any Other Loan?

A USDA loan isn’t going to be for everyone, but for some, it can be the best homebuying option out there due to its benefits. If you love country and rural living, check out some of the benefits of a USDA home loan.

0% Down Payment

When you have a lower income, you’ll qualify for a 0% down payment.

Reduced Mortgage Insurance

With a USDA home loan, you’ll have reduced mortgage insurance premiums.

Fewer Restrictions

Having trouble qualifying for a typical home loan? A USDA loan may be the answer.

Lower Mortgage Rates

Typically, USDA home loans will offer below market value mortgage rates.

Discounted Closing Fees

The maximum seller-paid closing cost is only 6% with a USDA Loan.

Comfortable Living

USDA loans have strict property guidelines, so you know you’ll be in a safe, quality home.

Do you qualify for a USDA Loan?

If you don’t know the answer to this question, that’s completely okay! One of our team members will be happy to go over the details with you, but you’ll need to meet the USDA income requirements and be able to do a monthly payment of 29% or less of your monthly income. You can learn more on the USDA housing website, or you can simply talk to one of our originators for more details.

SEE IF YOU QUALIFY

USDA Property Guidelines

No cracked windows
No missing flooring/no sub-floor showing
No missing shingles
AC/heat must be in working condition
Plumbing works in all sinks, toilets, shower
Smoke and carbon monoxide detectors
GFCI outlets in bathroom and kitchen
Outlet covers on all outlets
Up to date well/septic
Handrails on all stairs
No peeling paint
No exposed/frayed wires
No buildings with the primary purpose of producing income (barns, silos, commercial greenhouses)
No pool
Access to the home on an all-weather or paved road

Still unsure if a USDA Loan is right for you?

That’s okay—because our team is here to help guide you every step of the way. We don’t want you to feel left out in the dark, but instead to have complete clarity and transparency throughout your entire loan process.

Here at Luminate Bank, we truly believe in our mission and core values. We focus on people like you because we understand that character does count. We stay humble and work hard so that the lending process stays approachable and transparent every step of the way.