USDA Loans
If a traditional mortgage isn’t the right fit for you, consider USDA loans as a budget-friendly path to homeownership, tailored for low-to-moderate-income buyers in rural and suburban communities.
What is a USDA Loan?
USDA loans, backed by the U.S. Department of Agriculture, assist eligible buyers to purchase homes with zero down payment. They are available through trusted USDA lenders in PA, like Orrstown Bank. Applying for a USDA loan makes the dream of homeownership achievable for many without the need for a significant down payment.
USDA Loan Requirements:
- Location: Homes must be situated in USDA mortgage locations, specifically eligible rural or suburban areas (with populations under 20,000).
- Income: Household income for applicants must not be more than 15% above the area's median income, aligning with the USDA mortgage debt to income ratio
- Closing Costs: Sellers can cover up to 6% of closing costs with USDA loans.
- Primary Residence: Loans are available only for owner-occupied, single-family homes.
- Affordability: A debt-to-income ratio below 41% is generally required to meet requirements for a USDA mortgage loan.
- Credit: A minimum FICO score of 640 is needed.
Benefits of USDA Loans:
- Zero Down Payment: Benefit from 100% financing with no USDA mortgage down payment.
- Competitive Interest Rates for USDA Loans: Enjoy typically lower-than-market loan mortgage rates.
- No Pre-payment Penalties: Freedom to pay off early without penalty.
- Lower Closing Costs: Option for sellers to cover up to 6%, or include them in the loan.
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Zero Down Payment: Benefit from 100% financing with no USDA mortgage down payment.
Why Choose Orrstown Bank?
With over 100 years of experience, Orrstown Bank offers personalized service and a seamless lending journey. As one of the banks that do USDA loans, our strong local presence and streamlined application process ensure you close faster and settle into your new home with ease.
Reach out to one of our USDA Mortgage Lenders near you, or kickstart your application online. Pre-qualify to determine how much home you can afford with current USDA loan rates. Contact our friendly loan officers to get your questions answered and discover our latest USDA mortgage interest rates and Orrstown Bank mortgage rates. Calculate your mortgage rate and learn more about current USDA loan rates today.
Important Notice: Interest Rates and Maximum Loan-to-Value may be based on Credit Score, Property Type, Occupancy, Purpose, Investor, Insurer, Loan to Value and other factors. Additional investor, insurer and Orrstown Bank criteria/conditions apply to all products. Information provided is for illustrative general use only and does not contain all qualification and automated underwriting approval requirements. Orrstown Bank reserves the right to change this information at any time. Meeting any of the criteria does not constitute a commitment to lend.
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