Home Mortgages Through the USDA

Home Mortgages Through the USDA

Are you interested in purchasing a home in a rural or suburban area? If so, you could qualify for an excellent loan program through the U.S. Department of Agriculture, (USDA). USDA loans have many benefits for home buyers, including no down payment. Contact our specialists at Foundation Mortgage to help determine if you qualify for this great financing program in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee.

What Is a USDA Loan?

A USDA loan is a zero down payment financing option for eligible rural and suburban home buyers. It is a non-conventional loan insured through a government agency, (a segment called the USDA Rural Development Guaranteed Housing Loan Program), and was created to help improve the economy and American rural quality of life. Because the loan is insured by the USDA, lenders can offer loans to home buyers with less than ideal credit because the USDA can guarantee a portion of the mortgage in case a borrower defaults on the loan.

The purpose of the program was to enable low-to-moderate income families the opportunity to secure a home loan. A USDA loan can help you finance construction on a new home, purchase a recently built home, or buy an older home. USDA loans are widely available and are a great source of financing because they have no down payment, reduced mortgage insurance premiums, and lower mortgage rates.

Benefits of a USDA Loan

In addition to affordable home ownership, there are a variety of other benefits to using the USDA loan program. Some of the great benefits are:

  • 0% down payment
  • Low loan costs and low interest rates
  • Low private mortgage insurance (PMI) rates, with the ability to finance PMI
  • Flexible credit guidelines

How Do You Qualify for a USDA Loan?

If you are able to qualify for a USDA loan, you are eligible for a very affordable pathway to home ownership. Qualifying for a USDA loan can vary by location and depends largely on your income, location, and household size. Our team at Foundation Mortgage can work closely with you to help determine if you qualify for a USDA loan. The following is a common list of criteria to qualify for a USDA loan:

  • The home must be located within a USDA-eligible lending area
  • The buyer must be a U.S. citizen
  • A monthly payment that is 29% or less of your monthly income is required
  • You must be able to verify dependable income, normally for a minimum of 24 months
  • You must have a credit score of 640 or higher

Secure a USDA Loan Today

If you are seeking a home in a rural or suburban area of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact Foundation Mortgage today to see if you qualify for a USDA loan. Our mortgage specialists will help you find and finance your dream home. Call us today for a consultation.


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