FIND OUT IF YOU QUALIFY FOR A USDA LOAN- TODAY!!!   

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CALL OR APPLY ON-LINE  404.814.4634 Extention 706 Speak to a USDA Loan adviser. Our loan approval process is quick and in most cases, we can approve you right on the phone.

Locate the counties or a specfic address that are eligible for USDA Financing
Per county, know the Total household income restrictions for each family. (use "Guaranteed")
Application:  USDA Flyer:	USDA Combined Application.pdf USDA loans.pdf
Have questions about qualifing for a USDA Loan?     Email us

1. Why choose a Rural Development Guarantee loan with Network Funding, LP ?

USDA Rural Development Guarantee (RDG) loans are the only true 100% percent financing loan you will find. Period. We require zero downpayment and no private mortgage insurance (PMI) - two costs associated even with most FHA loans.

The USDA RDG loans are set for 30 years at a fixed rate, and there is no limit on the price you pay for the home.   The only qualifying factor for the home itself is that it be situated within an approved USDA eligible area and that you can reasonable qualify for the loan with your income and credit. You can apply here

2. Can I Save Money by Using the USDA Rural Development Grant Program?

Yes.   Take, for example, a loan for $100,000.00. By taking out a USDA Rural Development loan, the borrower saves $4,290.00 in the first 10 years over what they’d pay out on an FHA loan. Why?   For one reason - USDA RD loans don’t have any monthly Mortgage Insurance requirement!

Sure, you pay a USDA Guarantee fee of 2 percent up front when you take out the loan, but that sure beats paying MI each month until you get your Loan to Value ratio down to 80 percent!

Remember, it is difficult to drop MI insurance, and lenders will not drop it from your monthly payment unless you ask them to.   (I know, big shock.)   Plus, the MI premium has to be calculated into the ratios. This is NOT an issue with the RD loan since MI is not required. You can apply for this program here.

3. Is the USDA Providing the Funds for These Loans?

No. Much like the FHA, the USDA Rural Development Single Family Housing Program functions as a backstop or safety net for mortgage lenders - in effect guaranteeing that they are protected in the event you default on your loan - up to 90 percent of the original loan amount.

For the finance geeks out there - things break out as follows:

• Losses up to but not exceeding 35 percent of the original loan amount are fully reimbursed.
• Any losses exceeding the 35 percent total are reimbursed at 85% of their total.

So, in effect - lenders are only left with the remaining 15 percent of “true exposure” on these loans, which is why you are able to benefit from such a great program!

This guarantee grants lenders a great protection against losses. The quality of this USDA guarantee is what allows lenders to easily sell the loans on the secondary market. As a result, they feel free to lend funds in cases where other nonparticipating lenders may not.

4. What Type of Credit Do I need in order to Qualify?

Typically, the good folks over at the USDA financing office like to see minimum credit scores at 620 or above.  

• Must have three Trade lines ( creditors you are paying Monthly)  Can build credit, Electric, Water etc..
• No scores - ok
• All credit is reviewed for the last 12 months.
• Can not have a Foreclosure in past 36 months.
• Bankruptcy must be discharged within 36 months.
• No Lates in the past 12 months on any credit.
• Accounts converted to collections within past 12 months.
• Tax liens or delinquent government debts (including student loans). must be paid
• All Judgements must be paid before closing.
• Can not have any outstanding collection accounts.
• You can not currently have a mortgage or own another home. ( even if it's free and clear)
• Must be able to provide canceled checks or money orders to verify that you pay rent on time in the past 12 unless paying a management company.
• NEW!! Home Repair Escrow Program finances repairs up to $10,000 in the loan

Note: Lenders are permitted to use a nontraditional credit report or verify your creditworthiness with other sources, such as: utility payment records; rental payments; insurance payments; child care payments; payments to local stores, payments on medical bills, etc. Network Funding, LP  looks at theses credit scores and types on a case by case basis. Scores under 660 are subject to a 41% debt to income ratio which does hinder a larger loan amount then say a score over 660.  You can apply for a USDA Loan here.

5. Are there Minimum and Maximum Loan Amounts Associated with USDA Rural Development Loans? There is NO minimum loan amount for the USDA Rural Development loan program. Network Funding, LP will only allow financing for a home that is worth $60,000 or more. Typically, borrowers are limited to the appraised value of the home plus the 2 percent   Guarantee Fee.   The great news here is that you may finance 100 percent of the purchase price of your home (103.5 percent if you are financing in the 3.5 percent Guarantee Fee).

Note: The Guarantee Fee is a fee charged by Rural Development.   This fee is equal to 3.5% percent of the final loan amount and may be financed into the loan itself.  

6. What Will Be Included in My Monthly Payment?

The monthly payment will include principal, interest and the monthly cost of real estate taxes and insurance. Your lender will provide an estimated payment for you. Click here to use one of our many calculators

7. How Are Closing Costs, Fees, etc. paid on the USDA Rural Development Loan?

These fees and other eligible costs - including some repair/rehab costs - may be rolled into the loan.   Again, 100 percent means NO out of pocket expenses at closing!

Find out within 5 minutes if you are eligible for a USDA Home Loan - Click here