Address: 1950 Craig Road, Suite 100 St. Louis, MO 63146 | Phone: (314) 336-9111

Missouri USDA Loans

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USDA Missouri 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 loan Missouri 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 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.

How are USDA Loans different from standard mortgages?

The main difference between a USDA loan and a conventional mortgage is as follows:

  • USDA Loans don’t require down payments, where conventional mortgages usually require a percentage of the total cost upfront.
  • Interest rates for USDA Loans are lower than other types.   This means payments that are lower than one might expect, and a bit less pressure to produce crops and cattle in the early stages.
  • Credit checks are more lenient than strict loans like Jumbo, VA, and conventional, which require high credit scores; conversely, credit requirements are more stringent than FHA loans.
  • USDA Loans incur an income limit of 115% of the local median income. That means if you make twice as much money as the average person in your designated area per year, you’re automatically ineligible.
  • As one would expect, USDA loan approval requires a rural area that is targeted by the Federal Government for development. If you don’t wish to relocate, you may find this limits your options.
  • The property must be occupied by its owner and cannot be used as an investment property. By this measure the USDA is stating that it wants to avoid granting loans to corporations, and that the USDA Loan has individuals and families as its benefactors.

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.