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Missouri USDA Rural Development Loans

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USDA Missouri Rural Development Home Loans

We are committed to offering products with the best mortgage rates, which is why Liberty Lending Consultants is proud to provide our customers with USDA home loans in Missouri.

Since its inception in 1949, the United States Department of Agriculture (USDA) set up the lending guidelines for the program, and that is why it is also called the USDA Rural Development (RD) Loan. In this time, the USDA loan has provided 1 million homebuyers the opportunity to obtain housing with little to no money down. This mortgage type reduces costs in rural and suburban areas where people are looking for homes in Missouri. It is one of the most cost effective home buying programs in the marketplace today and is increasingly becoming more popular by the day. Buyers are discovering an easy way to buy a home with zero down payment, low rates, and affordable payments from USDA loans Missouri.

In 2011 alone, 130,000 people benefited from the program. In addition to 30-year terms and 100% financing, you’ll receive very competitive interest rates that ensure your payments won’t increase every month. Plus, no down payment of any kind is required. Contact our team today to see if a USDA rural development loan is right for you.

What Are the Advantages of USDA Home Loans from Liberty Lending Consultants?

  • 100% Financing
  • Low Monthly PMI
  • Awesome 30-Year Fixed Rates
  • Roll in Your Closing Costs
  • Purchase or Streamline Refinances Only
  • Owner Occupied Only

USDA Loan Eligibility Requirements

USDA rural development loans come with a lot of benefits – most notably reduced costs. But before you can take advantage of the zero down payments, low rates and affordable monthly payments that USDA loans have to offer, you need to qualify. So what exactly are the requirements?

First, the property you’re looking to purchase most be located in a USDA eligible rural area. While many homes and buildings in rural and suburban Missouri qualify, our expert mortgage consultants will work with you to make sure your property is in the spot it needs to be.  

You must also maintain a certain income cap. On average, the cap is around $75,000/year for a one to four person household. Your income also needs to be up to 115% of the median income for the area in which your property is located. But you don’t need to know that information yourself – one short conversation with consultants can help you determine if your income qualifies. Finally, you’ll also need to have a credit score of at least 620 or a credit history that demonstrates your can pay your mortgage on time each month. Our consultants will also help you determine if your credit meets this criteria.

The good news? When you meet all of these requirements, you can take advantage of the exceptional benefits that come with a USDA loan. Those include 100% financing, rolling in your closing costs and awesome 30 year fixed rates. That means you probably won’t find your payments increasing every month.

If the property you’re looking to buy is in the right part of Missouri, applying for a USDA loan is a no-brainer. And with help from our expert mortgage consultants, figuring out if you qualify won’t take much brainpower either.

USDA Loan Vs. Conventional Loan

USDA loans offer fantastic benefits to borrowers.  Compared to a conventional housing loan, USDA loans are much more borrower-friendly.  However, USDA loans are not as widely available as conventional housing loans.  USDA loans are issued by the United States Department of Agriculture to prospective homeowners looking for housing in rural areas.  USDA loans are restricted to certain geographical regions and still, require a fairly healthy credit history.  Here’s how USDA loans differ from conventional housing loans.

USDA Loans

USDA loans are offered to home buyers looking to buy a house in rural, and occasionally, suburban areas.  USDA loan eligibility is determined by a pre-determined geographical region that the USDA designates as eligible for housing loans.  Once you’ve determined your eligibility for a USDA housing loan based on location, you must then check eligibility based on creditworthiness and finances.

USDA Loan Details

  • Limited to Select Areas, Properties
  • No Down Payment
  • Fees: $1000 per $100K borrowed, monthly premium
  • Insurance: Required, can be financed into mortgage
  • 640 FICO Score of Higher

Conventional Housing Loans

Conventional housing loans are easier to receive compared to USDA loans, however, are not nearly as generous with regards to monthly payments, insurance, and down payments.  Conventional loans can be applied to secondary and investment properties in addition to primary properties.  Conventional loans are offered by a variety of banks and financial institutions.  Each conventional housing loan varies by the applicant.

Conventional Housing Loan Details

  • Primary, Secondary, and Investment Properties
  • Down Payment Varies
  • Fees Vary By Loan
  • Insurance: Typically required, up to 20% of loan
  • FICO Score of 620 or Higher Usually Required

Regardless of what loan you’re looking for, Liberty Lending Consultants will work with you to ensure you get the best rates available.  Liberty Lending Consultants is ready to assist you through the mortgage process when searching for St. Louis mortgages and housing loans.

Missouri USDA Loan Requirements

As noted above, USDA loans are restricted to certain geographical regions, properties, and incomes. Unlike conventional home loans, you must fulfill all USDA loan requirements to gain approval. Regions eligible for USDA loans vary by location, as does income requirements. Below is a general outline of the USDA Loan Requirments.

  • The home or property in which you plan on buying must be in a USDA certified region
  • USDA Home Loans can only be applied towards primary properties
  • Lower to middle-income individuals or families are typically targeted for these loans. Some middle and most upper-income individuals or families will not be eligible for USDA home loans in most cases

Why Get a Missouri USDA Loan?

  In cases where the requirements are aligned—e.g. properties that are selected based on their eligibility and potential—it perks outweigh all the other options. While USDA guidelines for approval can be tight, they are much more flexible when it comes to what the loan is used for. And since farms will always provide the backbone of food production in the U.S., however you venture to use the farm will have an accepting market waiting for it.