USDA Home Loans

🌾 USDA Home Loans – 100% Financing for Rural & Suburban Buyers

Affordable, No-Down-Payment Mortgages from Cap One Lending

At Cap One Lending, we help make homeownership possible with USDA-backed home loans—designed for buyers seeking affordable, zero-down-payment options. Backed by the U.S. Department of Agriculture, USDA loans offer fixed-rate, 30-year terms and are available for more than 90% of U.S. land, including many suburban neighborhoods.

✅ No Down Payment
✅ Low Mortgage Insurance
✅ Flexible Credit Guidelines
✅ Ideal for First-Time and Repeat Buyers

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🏡 What Is a USDA Home Loan?

A USDA loan is a government-backed mortgage program through the Rural Development division of the USDA. These loans are available to eligible borrowers who want to purchase or refinance a primary residence in a USDA-approved area—with 0% down and below-market rates.

Despite the “rural” label, many eligible areas include suburban communities just outside major cities.

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✅ Why Choose a USDA Loan?

• 0% Down Payment – Purchase or refinance with no money out of pocket
• Low Monthly Insurance – 0.35% annual mortgage insurance
• Competitive Rates – Fixed 30-year terms at favorable interest rates
• Flexible Closing Costs – Can be financed or paid by the seller (up to 6%)
• No Prepayment Penalties – Pay off your loan early without fees
• Streamlined Refinance Available – No appraisal or income documentation for eligible borrowers

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🧾 USDA Loan Guidelines

Loan Terms & Structure:

• 30-year fixed rate only
• No loan amount cap, but subject to income/property limits
• Loan-to-Value (LTV): Up to 100% + financed upfront guarantee fee
• Upfront Guarantee Fee: 1% (can be rolled into the loan)
• Annual Mortgage Insurance: 0.35% of loan balance

Credit & Income:

• Minimum Credit Score: 640+ for automatic approval
• Manual Underwriting: Possible with scores as low as 600
• Debt-to-Income Ratio (DTI): 29% housing / 41% total (32%/44% with a 680 score with one of the following compensating factors): 
• • 3 months PITI reserves
  • Same employer 3+ years
  • Payment shock ≤ $100 or 5% and no 30-day lates in last 12 months
  • Energy efficient home

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📍 Property Eligibility

• Must be a primary residence
• Located in a USDA-eligible area (Check Eligibility Here)
• Eligible property types include:
• Single-family homes
• Townhomes and condos (in approved developments)
• Modular and manufactured homes affixed to a permanent foundation
• PUDs
• Properties on land (with no income-producing use)

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👥 Borrower Eligibility

To qualify for a USDA loan, you must:

• Be a U.S. citizen or permanent resident
• Have stable income for at least 12 months with 2-year employment history
• Meet moderate-income limits for your area
• Have no delinquent federal debt or recent bankruptcies

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🏗️ USDA Construction & Manufactured Home Financing

• One-Time Close Construction Loans are allowed
• You may build on your own land—treated as a purchase
• New manufactured homes are eligible if:
• Less than 12 months old
• Never occupied or installed
• Placed on a permanent foundation

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🔍 Appraisal & Property Questions

• Appraisal Validity: 180 days (extendable to 1 year)
• Termite Inspections: Only required if state, lender, or appraiser mandates
• Cisterns & Wells: Must meet HUD, state, or local water standards
• Acreage Limits: No specific cap, but land cannot be income-producing
• Square Footage: No minimum for site-built homes; 400 sq. ft. minimum for manufactured homes

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📚 USDA Loan Resources

• Property Eligibility Tool
• USDA Income Limits
• USDA Handbook
• USDA FAQs

Please note: lender-specific guidelines may vary. Contact Cap One Lending to confirm your eligibility.

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📞 Get Pre-Approved for a USDA Loan Today

Cap One Lending makes it easy to secure 100% financing through the USDA loan program. Our mortgage specialists will guide you every step of the way—from eligibility verification to fast, smooth closings.

📲 Call us at 816-905-1111
🌐 APPLY HERE

🌾 USDA Streamlined Assist Refinance

Lower Your Monthly Payment — Fast & Simple

If you already have a USDA loan, the USDA Streamlined Assist Refinance program allows you to reduce your monthly payment without going through a full refinance process.

At Cap One Lending, we make it easy to take advantage of lower rates with minimal paperwork and a faster path to closing.

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✅ Why Choose a USDA Streamlined Assist Refinance?

• Lower Monthly Payment Required
  Your new payment must be at least $50 lower than your current total housing payment (including taxes, insurance, and USDA annual fee).
• No Appraisal Required
  Your home value is not re-evaluated.
• No Credit Score Requirement
  Approval is based on payment history, not a minimum score.
• No Income or DTI Requirements
  No income documentation or debt ratio calculations required.
• 6-Month Seasoning
  Your current USDA loan must be at least 6 months old.
• Perfect Recent Payment History
  Must be current at application with no 30-day late payments in the past 6 months.
• No Loan-to-Value Limits
  No appraisal means no maximum LTV.
• Roll in Closing Costs
  Closing costs and the upfront guarantee fee can be included in the new loan.
• Annual Fee Applies
  The new loan will include the USDA annual fee (currently 0.35%).
• No Cash Out
  This is a rate-and-term refinance only.
• Faster, Simpler Process
  Less documentation, fewer conditions, and quicker approvals.

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🏡 Who This Program Is Best For

• Borrowers with an existing USDA loan (Direct or Guaranteed)
• At least 6 months of on-time payments and currently in good standing
• Homeowners looking to lower their monthly payment without a full requalification

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If your goal is to reduce your payment without the hassle of a traditional refinance, the USDA Streamlined Assist program is one of the simplest options available.