USDA Rural Loans


It wasn’t all that long ago when few people even know about the USDA loan program and those that did thought it had to be you owned a farm in order to qualify for a USDA loan. But not today.  Most people who are shopping for a home outside a major city are surprised to learn that many properties qualify for a USDA loan even though they can hardly be considered “rural”.

Location of the property is key in qualifying for a USDA loan and it is determined on a property by property basis according to zip code and county. Qualifying for a USDA loan has very similar requirements to qualifying for a FHA loan and it is very much the same process. In order to qualify for the USDA loan program, you will be expected to be able to document your current income, have decent credit and generally show that you have the financial ability to repay the loan.

  • A USDA loan is backed by the USDA
  • True 100% / No Money Down financing
  • Can be used to buy a new home or refinance an existing mortgage
  • Many people can qualify – it is “not just for farmers”

The USDA loan program is administered through a network of lenders who are USDA approved lenders. Not every lender is USDA approved and not all lenders have the same level of expertise when it comes to helping you with a USDA loan.  MK Mortgage Group is based in Elizabeth, Colorado and is very familiar with the requirements of rural lending.  Call us, we can help!

Still have questions about USDA loans? Here are some of the most common questions people ask us:

Are co-borrowers allowed on a USDA loan?

Yes! The maximum number of borrowers allowed on a single transaction is four. Income from all borrowers and non-borrowers occupying the subject property must be considered when calculating qualifying income.  All borrowers must live in the home

What kind of credit history do I have to have to qualify for a USDA loan? Can I qualify for a USDA loan with bad credit?

Credit history must indicate a reasonable ability and willingness to meet obligations as they become due. The following are indications of unacceptable credit history and must be carefully investigated. If the loan approved through our automated underwriting engine, the guidelines below are not required to be met.

• More than one payment being more than 30 days late in the last 12 mos.
• A foreclosure or bankruptcy in the past 36 months.
• A judgment in the last 12 months.
• Outstanding tax liens, mo matter what their age, that are currently delinquent.
• Two or more rent payments paid 30 days or more past due.
• Outstanding collection accounts, no matter what their age, that are currently delinquent.
• Previous rural housing debt resulted in a loss.
• Any outstanding judgment obtained by the United States in a federal court (other than a tax lien).

These are just a few of the more common questions that we get about qualifying for a USDA loan. If you have questions about your particular situation, be sure to call one of our experts!