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USDA Loans

White rail fence surrounds tidy farmhouse in Kansas.

Affordable Mortgages for Rural and Suburban Home Buyers

If you are a home buyer looking to live near the plains rather than the pavement, the U.S. Department of Agriculture and Landmark National Bank have a mortgage loan just for you: a USDA loan. This type of home loan requires zero down payments for low- to moderate-income residents who want to live in designated rural areas across the state.

What is a USDA loan?

Issued by the USDA’s Rural Development Guaranteed Housing Loan Program, USDA loans provide mortgage assistance for those who have an affinity for country living. Both first-time home buyers and those who do not meet the requirements for conventional loans are eligible for USDA loans. Landmark National Bank is recognized by the USDA as the top mortgage lender in Kansas for Guaranteed Home loans.

Homes purchased with a USDA loan must be in designated rural areas, such as open country or any town, village, city, or place (including the immediate adjacent densely settled area) which is not part of or associated with a metropolitan statistical area (MSA). It’s important to note that the maximum population of a rural area for a USDA loan is 20,000.

USDA Home Eligibility Map

To find out if the home you are looking at is eligible for a USDA loan, you can complete an address verification form or view the USDA home eligibility map.

USDA Loan Income Limits

Because USDA home loans are oriented towards buyers with low- to moderate-incomes, there are set income limits based upon the Kansas county your home is in and your family size. For updated loan limits, feel free to review the USDA’s Direct Limit Map or input your information into the Single Family Housing Income Eligibility form today.

Other USDA Loan Eligibility Requirements

Aside from finding a property in an eligible area and income restrictions, the USDA also requires borrowers to meet certain eligibility requirements, including:

  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Agree to personally occupy the dwelling as your primary residence
  • If non-self-employed, one-year of income history is required. If self-employed and seasonal, two years are required.
  • Must demonstrate a willingness and ability to repay debts, but no set credit score requirement. (Landmark National Bank typically looks for a 640 FICO credit score and up.)
  • Total payment (including principal, interest, taxes, insurance, HOA dues, and RD annual fee) typically should not exceed 29% of gross monthly income.
  • All payments included on your credit report (including proposed new mortgage payments) typically should not exceed 41% of gross monthly income.
  • And more.

How does a USDA loan work?

USDA loans are typically given to applicants who are deemed to have the greatest needs. According to the USDA, applicants who need decent, safe, and sanitary housing, are unable to secure a home loan via traditional means, or have an adjusted income at or below the low-income limit for the area where they live are typically given priority by the USDA when applying for this loan. Dive into our Quick Rate Calculator for additional insight before speaking to our mortgage specialists.

Apply for a USDA Home Loan with Landmark National Bank

You don’t have to be a farmer or rancher to enjoy the benefits of a USDA home loan. Get in touch with Landmark National Bank’s mortgage specialists today to learn more about USDA loans or to get started with the application process.