USDA Loans
If a conventional mortgage isn’t an option, USDA loans offer an affordable path to homeownership for low-to-moderate-income buyers in rural and suburban areas.
What is a USDA Loan?
USDA loans, backed by the U.S. Department of Agriculture, help buyers purchase owner-occupied homes with no down payment. Available through private lenders like Orrstown Bank, they are designed to make homeownership more accessible.
USDA Loan Requirements:
- Location: Must be in a USDA-eligible rural or suburban area (population under 20,000).
- Income: Must not exceed 15% above the area’s median income.
- Closing Costs: Sellers can cover up to 6% of closing costs.
- Primary Residence: For owner-occupied, single-family homes only.
- Affordability: Generally, a debt-to-income ratio under 41% is required.
- Credit: Minimum FICO score of 640.
Benefits of USDA Loans:
- No Down Payment: 100% financing available.
- Low Interest Rates: Typically below-market rates.
- No Pre-payment Penalties: Pay off early with no fees.
- Lower Closing Costs: Sellers can cover up to 6%, or roll costs into the loan.
- Affordable PMI: USDA loans offer the lowest private mortgage insurance rates.
Why Choose Orrstown Bank?
With over a century of experience, Orrstown Bank offers personalized service and a smooth, transparent lending process. Our local presence and advanced technology help you close faster and get into your home sooner.
Talk to our loan officers or start the process online. Get pre-qualified today! Contact our friendly loan officers to find answers to your questions and get our current USDA mortgage rates. You can also start the process online. Begin by determining how much home you can afford, then get pre-qualified and complete and submit the application.
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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