USDA loan limits Utah county

USDA Home Loan The Rural Housing Service (RHS) is an agency of the United States Department of Agriculture (USDA) and helps to provide affordable home financing options in rural areas. The USDA home loan is properly known as the Single Family Housing Guaranteed Loan Program. You must meet certain eligibility requirements to qualify for this loan program.

Loan Uses Use a USDA home loan for the following transactions: • •

Purchase – Finance the purchase of an existing home or new construction home.

Rate & Term Refinance – Refinance a current USDA loan in Utah with at least a 1% reduction in the interest rate and meet other Rural Housing criteria.

You are unable to receive more than $250 cash back at closing and Texas residents may not receive any cash back at closing.

Loan Amounts The conforming loan limit set by Fannie Mae and Freddie Mac of $548,250 is the maximum loan amount for a USDA loan.

Down Payment A down payment is not required for a USDA home loan. Financing up to 100% is available and the upfront guarantee fee may be financed into the loan amount.

Mortgage Insurance Mortgage insurance is not required on a USDA home loan in Utah. However, you must pay both an upfront guarantee fee and an annual guarantee fee. The upfront fee can be financed into the new loan amount and the annual fee is paid monthly for the life of the loan.

Property Types Use a USDA home loan for the purchase or refinance of the following property types in a designated rural area: •

Single family residence – non-farm residences only

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Townhouse – one unit, attached or detached Condominiums – USDA-approved only Planned Unit Developments – PUDs Leaseholds – lease must extend ten years past mortgage maturity and common for the area

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Credit Requirements A USDA home loan has flexible credit guidelines and you must have at least a 620 FICO score with two or more credit bureaus.

Occupancy You may use a USDA home loan for the purchase or refinance of an owneroccupied property.