USDA Offers Home Loans Outside Denver

Guest Blog by Matt Polsky, Mortgage Commentator with USDAloans.com

US Department of Agriculture makes mortgages in rural Colorado including some Denver Suburbs. Photo courtesy: vbsouthern

The United States Department of Agriculture (USDA) offers our rural areas in Colorado programs that not only help spur business, but provide affordable financing. After recent changes, these programs should no longer be considered a farmer only loan because even some rural Denver suburbs are eligible. Since the programs’ expansion, over 50 million US citizens are considered to be living in rural areas.

While Denver definitely doesn’t qualify as a rural area, there are many surrounding areas and suburbs that fall under the qualifications of the USDA rural development program. These areas can easily be found on the USDA’s eligibility map.

For Potential Homeowners

Potential homeowners searching for a home in a rural area should strongly consider USDA home loan program. The USDA’s guaranteed home loan program allows potential homeowners to secure financing without having to front a large down payment and gives the potential homebuyer the option of financing up to 30 years. Other great benefits include:

·No monthly PMI charges

·Optional down payment for qualified borrowers

·Low interest rates

·Lax eligibility requirements

To be eligible for the USDA home loan program, buyers should find a home in an eligible area, have an income that is no larger than 115 percent of the median household income for the area, and be able to make the monthly mortgage payments. Potential borrowers should also expect a credit score of at least 620 to obtain financing. To accurately determine your eligibility, consider contacting a USDA home loan specialist to ease the process.

Business Grants and Loans

The USDA is on a mission to establish strong rural communities with solid social and economic properties that include environmental stewardship, responsibility, fairness, and genuine opportunity. The USDA show’s these values through the opportunities they offer to rural businesses all over the nation.

The USDA’s Rural Development Program provides economic opportunities that create infrastructure and increase the overall environmental health of the area. Under the program, small business owners are given the opportunity to gain educational training, technical assistance, and tools to start and run their small businesses.

There are different types of grants and loans available to small businesses owners, which means doing your research is necessary. The USDA offers a complete listing of their business grants and loans on their website, which is a great resource; however, the most common business loan is the Business and Industry Guaranteed Loan. With this program a borrow may be a corporation, partnership, cooperative, or other legal body designed to be operated on a for profit or nonprofit basis. Business owners must engage in activities that:

·Provide employment

·Improve the economic or environmental climate

·Promote conservation, development of land, and use of water for aquaculture

·Reduce reliance on nonrenewable energy resources

Borrowers can borrow up to $10 million without extra approval, up to $25 million with a USDA Administrator’s approval, or up to $40 million with approval of the Agriculture Secretary. The loan terms are set at a maximum of 30 years with a desirable interest rate that will be negotiated between the lender and the applicant. To file an application for a Rural Development loan, contact the Colorado Rural Development Office.