USDA FinancingUSDA 100% Financing!

If you are looking for a home loan without a down payment, a USDA loan could very well be your best pick. Ask our professional staff at 1st Colorado Mortgage Solutions and we will help you understand whether you actually qualify for a loan like this.

USDA Rural Housing Loans can be a great choice for the right home and the right buyer in a rural market or small town. Although Denver properties do not qualify for USDA Rural Housing Loans, there are many surrounding areas that do.

USDA Highlights:
  • Up to 100% financing
  • Low monthly Mortgage Insurance rate at 0.4%
  • Easier qualifying than most other programs
  • Seller concessions allowed to help cover closing costs
  • Low 30 year fixed rates available


There is a 2% USDA guarantee fee that is assessed at closing, but is typically rolled into the new loan amount. In addition, seller-paid closing costs are allowed which can enable you to purchase a home with little or no money out of pocket.

You cannot own another home currently in order to qualify for USDA Rural Housing Loans. The property must be located in a USDA Eligible Area, generally a rural location or a smaller town with under 20,000 residents.

In addition to the home meeting eligibility, the home buyer must fall under USDA income limits in order to qualify. The limit is applied to the entire household income, regardless of who is on the mortgage, and some deductions are allowed for things like child care.

USDA Rural Housing Loans are one of the best programs available right now and one of the last remaining 100% financing options in the marketplace. The low rates and payment on this program make it an attractive option.

How does it work?

USDA home loans are originated by the federal government, but serviced through direct lenders. The repayment of the loan is guaranteed by the United States Department of Agriculture. This means you can use any traditional mortgage lender, but the loan must meet the USDA loan guidelines in effect at the time of the mortgage origination.

The application process for a USDA loan is essentially the same as any other loan, but the lender must ensure that you and the property both qualify for the USDA program. Eligibility of the property itself is determined not by the potential buyer, but by the location of the property.

Will you qualify?

Your ability to get a USDA loan is determined by your financial history. If you are a United States citizen and have a solid credit history (the usual qualifying score is between 620 and 640) and meet the usual income requirements, you can be qualified for USDA loan (presuming the home is located in a rural area covered by USDA loans). A steady job with a reasonable income is generally required for a loan approval.

Can you qualify for a USDA loan if you have had a bankruptcy in the previous three years?

Yes you can! You won’t need perfect credit, to get financing through USDA, but the more you pay attention to your financial record, the more likely you are to get a USDA loan approved.

  • Bankruptcy – Chapter 7
    • A borrower with a bankruptcy discharged less than three years prior to the loan application is ineligible.
  • Bankruptcy – Chapter 13
    • Document that 12 months of the repayment period has elapsed under the plan with all payments made on time
    • The borrower must have received permission from the court/trustee to enter into a mortgage transaction

If you are first time home buyer or if you simply want to purchase a property that qualifies for a USDA home loan by virtue of its rural location, now is the perfect time to talk with the mortgage professionals at 1st Colorado Mortgage Solutions about starting the qualifying process. USDA home loans offer you the flexibility, stability and economy you need to make your plans for a new home a reality.