USDA

USDA loans have two types of mortgage insurance: an upfront guarantee fee (currently 1%) and an annual fee (currently 0.35%) that is paid monthly. These costs help support the program and make it sustainable.

During your Pre-Approval Review meeting, we will analyze whether the USDA program is the best overall option given your scenario, including your location, income, credit profile, and long-term goals. We’ll compare USDA side-by-side with Conventional, FHA, and VA (if eligible), evaluating differences in monthly payment, upfront costs, mortgage insurance, and long-term flexibility. Our goal is to ensure you're choosing the loan that aligns with both your short-term affordability and long-term financial strategy.

The USDA Guaranteed Loan is for low- to moderate-income borrowers, offering no down payment and competitive rates. It's available through a wide variety of Lenders/Brokers.

The USDA Direct Loan program is for very low-income buyers and is directly issued by the USDA. The Direct Loan program has extremely specific qualification requirements and a lengthy approval process. The application process is done directly with the USDA.

Yes, for most states, this loan can be used for eligible manufactured homes, as long as the home is located in an eligible rural area and meets the USDA’s structural standards.

USDA loans generally follow a strict 29/41 DTI guideline, meaning your housing expenses (including principal, interest, taxes, and insurance) shouldn’t exceed 29% of your gross monthly income, and your total debt obligations should stay below 41%. However, exceptions may be made for borrowers with strong credit, stable income, or additional compensating factors.

In your Pre-Approval Review, we’ll calculate your exact DTI and determine if you fall within acceptable ranges, or what changes might be needed to qualify.

You can also try our ClearCalc™ USDA Mortgage Calculator, which provides a full breakdown of your estimated monthly payment, closing costs, and even a quick evaluation of whether you may qualify based on your qualifying ratios.

USDA loans are limited to properties in USDA-designated eligible areas, which include many small towns, suburban outskirts, and low-population zones. These are not limited to farmland or remote rural areas. The best way to check if a home qualifies is by entering the address into the USDA Eligibility Map or by contacting us for help.

The user experience with a Mortgage Broker and bank/retail lender is the same in many ways, you work directly with us and our loan officers, just as you would with the loan officers at a bank/retail lender. The key difference is where your loan is funded and how that impacts your options, rates, and costs.

When you work with a bank or direct to consumer retail lender, you’re limited to that institution’s loan products, rates, and guidelines.

As a Mortgage Broker, we still handle the entire process, but instead of using a single bank’s products, we access wholesale mortgage lenders that fund the loans. These lenders don’t work directly with consumers, they provide funding through brokers like Murray Mortgage Solutions, allowing for lower rates, reduced fees, and a wider range of loan options.

So while the process may feel similar, working with a Mortgage Broker not only provides access to better rates and lower fees but also delivers a more personalized, flexible, and streamlined experience tailored to your needs. Visit our “What is a Mortgage Broker” article to learn more.