Utah USDA Rural Home Loans

Single Family Housing Guaranteed

Backed by the United States Department of Agriculture (USDA) this program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. This remains as one of the few nationally offered loan programs available with $0 down payment. General requirements are similar to that of other Government backed loan programs like VA and FHA but for pre-determined rural and sub-urban areas. Household Income limitations based on number of people in the household also apply. Financing is available as a 30 year fixed rate, and for single family residences and condos only.

Like FHA, this loan type has an upfront funding fee (Guarantee Fee) as well as an annual guarantee fee that is divided into a monthly amount and added to the total monthly mortgage payment. The USDA rural home loan is not limited to first time homebuyers. The seller can contribute up to 6% of the purchase price towards buyers closing and prepaid costs.

These loans are submitted by lenders to be underwritten generally by USDA’s proprietary system titled G.U.S (Guaranteed Underwriting System) for quick approval. However upon conditional approval by the lender, each loan file must be sent to the local USDA office for Final approval. Due to the fact that this process can cause delays, it is highly recommended that you speak with us before making an offer to purchase a home so that you can plan your deadlines accordingly.