In 2015, USDA and Wells Fargo worked together to help 2,792 low-and moderate-income families and individuals purchase homes in rural America through USDA’s Guaranteed Loan Program. … The program requires no down payment from the applicant, offers a fixed interest rate, and has a 30-year loan term.
Also question is, what banks work with USDA loans?
Compare the best USDA lenders
| USDA Lender | Best Feature(s)* |
|---|---|
| Flagstar Bank | Strong customer review scores |
| CMG Mortgage | Strong customer review scores |
| American Pacific Mortgage Corp. | Strong customer review scores |
| PNC Bank | Low upfront fees on average |
Additionally, how much does a USDA loan cover?
Compare that to an FHA
| Loan Type | % Down | Down Payment |
|---|---|---|
| USDA | 0% | $0 |
| FHA | 3.5% | $7,000 |
| Conventional 97 | 3% | $6,000 |
| Conventional 95 | 5% | $10,000 |
What qualifies for a USDA house?
Stable and dependable income. A willingness to repay the mortgage – generally 12 months of no late payments or collections. Adjusted household income is equal to or less than 115% of the area median income. Property serves as the primary residence and is located in a qualified rural area.
Can I buy a house with no money down and excellent credit?
You can only get a mortgage with no down payment if you take out a government-backed loan. … You may want to get a government-backed FHA loan or a conventional mortgage if you find out you don’t meet the qualifications for a USDA loan or a VA loan. Both of these options will allow you to make a low down payment.
What are the cons of a USDA loan?
Disadvantages of USDA Loans
These include: Geographical requirements: Homes must be located in an eligible rural area with a population of 35,000 or less. Also, the home cannot be designed for income-producing activities, which could rule out certain rural properties.
Why are USDA loans bad?
Location Specific. Perhaps the biggest drawback of the USDA loan is that many homes, because of their location, simply will not qualify, though a surprising number still will. Be sure to check the USDA website to determine if your location would qualify for a USDA loan.
Why would USDA deny a loan?
Income and debt issues.
Things like unverifiable income, undisclosed debt, or even just having too much household income for your area can cause a loan to be denied. Talk with a USDA loan specialist to get a clear sense of your income and debt situation and what might be possible.
What credit score does Wells Fargo use?
What credit bureau does Wells Fargo use for approval? Wells Fargo uses all three major credit bureaus: Equifax, Experian, and TransUnion. Your state may factor into which credit bureau Wells Fargo uses when it pulls your credit report.
Does Wells Fargo give loans with bad credit?
Wells Fargo Personal Loan Requirements & Application Info
Wells Fargo also has secured loans for people with lower scores who want to use a Wells Fargo CD or savings account as collateral. Therefore, Wells Fargo is a good option both for people with good credit and people with subpar credit.
Does Wells Fargo offer no closing cost refinance?
Next you’ll be sent a contract you’ll need to have notarized, which I recommend doing at a Wells Fargo branch because they’ll do it for free even though they’ll also try to upsell you some new credit cards and savings accounts. …
Do sellers not like USDA loans?
USDA Loans and Seller Concessions Contribution Limits
Seller concessions for USDA loans are among the most buyer-friendly out there. Conventional buyers can’t tap into that 9 percent cap unless they’re putting down 20 percent.
Do you pay closing cost with a USDA loan?
Even with the money saving benefits of a USDA loan, it’s important to remember that any real estate transaction, including one with a USDA loan, will have closing costs. Closing costs on USDA loans generally run between 3 to 6 percent of the purchase price; however, every homebuyer’s situation is different.
Is it hard to get approved for a USDA loan?
Qualification is easier than for many other loan types, since the loan doesn’t require a down payment or a high credit score. Homebuyers should make sure they are looking at homes within USDA-eligible geographic areas, because the property location is the most important factor for this loan type.