USDA Loans offer 100% Financing

EDITORS NOTE:  Please check out this updated post (May 2011) on USDA financing for homes located in Washington State.  Income limits and the guarantee fee have since changed since publishing this post.

USDA Rural Development loans offer financing of single family dwellings in rural areas to people who meet certain income limits.  In King County, the current four-person household adjusted limit is $88,400 maximum income.  

This program provides up to 100% financing with flexible underwriting guidelines. There is no mortgage insurance however, similar to a VA loan, there is an upfront fee of 2% of the loan amount (guarantee fee) that can be financed into the new mortgage.   Mortgage rates are attractive considering the higher loan to value, no credit score price hits and no monthly mortgage insurance–I've added rates for USDA loans to my rate post that I do on Friday's here at Mortgage Porter.

To see if you and a potential property are eligible, click here.

If you're interested in a USDA loan on property located in Washington State, please contact me.  Mortgage Master is an approved lender.


  1. I wish more home buyers were aware of these type loans. All we hear from the media is that to buy a home you need perfect credit and 20% down. While USDA loans aren’t for everyone, they are perfect for first time home buyers with decent credit. I don’t know if many prospective home buyers in your area are considering mobile homes under this program but I get a lot of requests in the south. Those that are considering a mobile home need to know that (per the USDA) “by the time a buyer meets all the requirements for a mobile home to qualify, nearly all home buyers opt for a traditional home.

  2. This is a great program, espeically in this environment when eveyone thinks there is no such thing as a “no down payment mortgage” anymore.

    …if the media only shared good news sometimes!

    I try to mention this program to my customers, real estat agents, my blog, etc. Anywhere, to get this program talked about.

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