USDA Mortgage Loans - No Down Payment - 100%+ Financing - CT USDA Loan

Mortgage and Lending with Canopy Mortgage 89769

USDA Home Loans, Rural Development

Guarenteed Rural Housing Loan 

No Down Payment Required!

Here is a  quick overview of guidelines

Advantages of
 USDA Home Loans:


No Down Payment Required !

  • 30 year fixed mortgage at a great low rate!

  • 103.5% LTV (100% plus guarantee fee)

  • Finance Closing Costs If Appraisal Is Higher Than Sales Contract.

  • No Monthly Mortgage Insurance.

  • No cash contribution required from borrower.

  • Unrestricted gifts, no need to document source.

  • No Maximum Loan Amount.

  • No Reserve Requirement.

  • High earnings potential.

  • Competitive rates (set by underwriting lenders).

  • Available secondary markets: wholesale lenders as well as Fannie Mae and Freddie Mac.

  • Delegated underwriting for D.E. FHA, Fannie, Freddie, and VA approved underwriters.

  • Utilize in Conjunction with State Housing Authorities, if available.


  • Have a credit history that indicates a reasonable willingness to meet obligations as they become due and a 620 middle credit score.
  • Lender underwrites the loan.

  • Lack of credit is not derogatory.


Loan-To-Value (LTV) and Loan Limit:

  • 100% LTV plus the amount of the guarantee if financed.

  • Loan amount can exceed appraised value by the amount of the guarantee fee.

  • There is no loan limit.

-Limiting factors will be ratios and income limit.


Property requirements:

  • New or proposed home construction:

Meet the county and state code. Use conventional appraisal (new homes only).

  • All existing homes: Meet requirements of HUD Handbooks 4905.1 and 4150.2 and comply with Rural Development thermal criteria. Contact your local or state Rural Development office for alternatives to HUD Handbooks and the thermal criteria for a particular area. Loan funds may be used for repairs. Typically repairs must be completed prior to Rural Development issuance of the Loan Note Guarantee

  • Both new and existing: Private well water quality must meet local and state code.



Existing (previously occupied) manufactured home: Cannot finance under this program.



Modular homes: New or existing modular homes can be financed the same as stick built homes.



Condo: Rural Development can finance if it meets the standards for Fannie Mae, Freddie Mac, VA, or FHA.


Town home: Same as condo. A town home must have provisions for maintenance such as HOA.



One time guarantee fee of 3.5% of the final loan amount (it is only .5% on refinance of an existing Rural Development guaranteed or direct loan).

This fee can be financed along with other closing costs. The first mortgage guaranteed loan cannot exceed appraised value by more than the amount of the fee financed. No mortgage insurance requirement.


Term: 30 year fixed



Prohibited Loan Purposes:

  • Co-signors not residing in the household.

  • In-ground swimming pools unless the home appraises without using the value of the pool. 

  • Existing manufactured homes.

  • Construction draws

  • Furniture and personal property

  • Income producing property

  • Non-essential buildings and land

    Get started today! apply now

    Free No Obligation Pre-Approvals

    Note: guidelines are subject to change without notice.

Comments (1)

Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I will have to look at the USDA Mortgage and see where they may apply.

May 16, 2012 12:53 AM

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