Forgotten Your Password?

Need to Register?

Brian Mayer

Common Myths About USDA Loans

Tuesday, July 17, 2012 - Article by: Brian Mayer - Equity Resources - Message

I was talking to a Realtor the other
<img class="alignright size-full wp-image-691" title="usda loan myths" src="" alt="usda loan myths" width="225" height="300" vspace="6" hspace="6" align="right" /> day who was arguing with me that it takes 45 days
or longer to close a USDA loan.

I tried to explain that it was not true to no avail...

So please allow me to dispel a few misconceptions
and maybe share with you a tip or two about USDA Loans.

Myth - USDA Loans take 45 - 60 days to close
Truth - USDA is 1-2 days to approve loans right now
(I can close a USDA loan in as little as two weeks!)

Myth - USDA Loans are for farms or rural areas
Truth - Most of Maryland and Virginia are USDA Eligible

Myth - USDA Loans are for low income borrowers
Truth - Most of Maryland Virginia is 90k+ for a single person

Myth - USDA Loans have stringent guidelines
Truth - I can do USDA Loans using only alternative credit,
620 credit scores, no money in reserves, and up
to 41/48 DTI ratios

Myth - USDA Loans are for first time home buyers only
Truth - Not at all, there are no benifits or penalties for
being a first time home buyer with USDA

Myth - FHA Loans are better for most buyers
Truth - FHA's monthly MI is 4X higher than USDA.
USDA will give you a lower payment and no down
payment is required.

Myth - USDA can not be combined with
down payment assistance programs

Truth - Not true most of the time

  • USDA Loans require No Down Payment
  • Up to 6% seller contribution towards closing
  • You can get money for minor (lender required) repairs
  • You can even roll closing costs into appraised value above seller help!

So there you go...

If you want a second opinion about your loan or you need a USDA expert, please call me 443-624-9398 or shoot me an email Brian @ LoveMyLender .com

Didn't find the answer you wanted? Ask one of your own.

Get an answer
Subscribe to our news feed.