Coast2Coast is here to educate you
Regardless of your mortgage knowledge, Coast2Coast Lending will be more than happy to assist you. We take the time to answer all your questions and educate you on the advantages of first-time home buyers, 100% Down, No Money Down, Plus Closing Costs programs. If you are looking for information on government loan programs, you have found the right place.
Questions about qualifying or applying for a loan? We have loan specialists standing by 7 days a week to help you, please submit the Quick Request Form link at the top of this page to expedite your request quickly or call the number above.
What is a 100% USDA 502 Guaranteed Loan?
The single-family housing, USDA 502 Guaranteed program is a government-insured mortgage program for the states across the nation, including Florida, Georgia, Alabama, Tennessee, North Carolina, South Carolina, Virginia, Colorado, and Texas. Many smaller communities around populated cities are still USDA approved areas in 2024. It can be difficult for many first-time homebuyers to save the down payment required for FHA and Conventional loans. The goal of the USDA loan program is to help our rural communities by making homes more affordable through limited down payment requirements.
USDA Rural Development is one of the last 100% no money down mortgage programs available for non-military VA homebuyers in the U.S. This is good for first-time homeowners and public service workers from many trades that want to purchase a home but have limited savings.
Benefits Of USDA Rural Housing Loans
- 100% financing –The Federal government backs USDA loans, and allows 100% financing as a way to help develop and expand rural locations in the U.S. The USDA mortgage also allows for the seller of the home to pay the buyer’s closing costs, up to 6%. With that homebuyers can generally close on a home with little to NO money out of pocket.
- Loan qualifying is simple – Getting qualified and approved for a USDA loan is quick and easy. Often times, the entire pre-approval process can be completed in minutes. There are no special requirements like first-time buyer’s class, grants, or education that is needed to apply. Buyers just need to ensure they have decent credit scores (over 620) and income below the max limit set for the County.
- USDA household income limits – The new 2025 USDA income limits have just increased to $112,450 for a standard household of 1–4 members. For larger households of 5+ members, the income caps increase to $148,450. Please contact us to discuss 502 Guaranteed USDA income limits in more detail.
- Approved Locations– The 502 Guaranteed program is only for certain USDA eligible locations. The good news is a lot of “semi-rural” areas just outside the major cities are still approved and eligible for USDA financing. Please contact us today to discuss other zero or low down payment options if your area is not eligible.
- Secure interest rate– One of the benefits of the USDA loan is the fixed *30-year interest rate. Compared to other traditional loans where the interest rates can vary or adjust, the interest rate remains the same for the entire course of the loan. No pre-payment penalty or adjustable-rate (ARM) terms. Homebuyers can sell their home or refinance anytime without restriction.
- No savings requirement– Home buyers are not required to have a certain about of saving to be approved. Most conventional loans require large down payments and savings reserves for buyers to get approved, but not the USDA program. Buyers can also receive gift funds if they choose to put money down or help pay closing expenses.
- Lower Mortgage Insurance Costs – Did you know that the USDA mortgage insurance and Guarantee Fee costs are nearly half the amount of other loans like FHA. This alone can save home buyers a significant amount of money each month.
Please note, the USDA Rural Housing loan requires a 620 minimum credit score. Only primary owner-occupied homes are allowed.
Please submit the Quick Request Form above to speak with a Loan Specialist today and learn more about USDA home loans.
Not eligible for USDA financing? Please contact us to learn about other first time buyers programs.
Refinance Options
Already have a USDA Rural mortgage and want to learn about the available refinancing options? If so, please fill out the Quick Contact form on the left side to have a loan specialist contact you today. Interest rates remain low, and the USDA streamline refinance program could make it possible to drastically lower your monthly mortgage payments. No new appraisal, home inspection or equity is required!