Offering 100% financing for those with not so perfect credit.
Another affordable housing finance solution for those with less than perfect credit is the USDA mortgage offered through Midland States Bank. If you reside in a rural area and have difficulty qualifying for a home loan, you may be eligible for a Guaranteed USDA Rural Development mortgage based on your income level and the property location. The USDA mortgage program offers, fixed rate mortgage that is USDA-guaranteed and requires no down payment. The USDA Rural Development mortgage is designed for borrowers in rural areas who do not have the solid credit needed to qualify for a standard home loan.
Benefits of a USDA Mortgage:
No down payment.
There are no down payment requirements with a USDA mortgage, helping you get into the home of your dreams with a little extra cash in your pocket.
Fixed rate and payment.
The interest rate is fixed for the life of your loan, so if rates increase your payment amount will not change, nor will your term.
If you have had past credit problems, even bankruptcy, you may still qualify; however you must meet specific income to cost ratios.
Closing costs in loan.
To help those with limited available funds, closing costs may be included into the loan amount to reduce the money needed upfront.
No prepayment penalty.
If you pay off your loan early or choose to refinance, your USDA Loan will not be assessed any prepayment penalties.
Available for refinancing.
USDA loans are available for both purchases and refinances, but refinances are only available on USDA loans.
We offer two types of USDA mortgage loans.
USDA Guaranteed Rural Housing Loans
USDA Guaranteed Loans are the most common type of USDA home loan and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area.
USDA Direct Rural Housing Loans
USDA Direct Rural Housing Loans are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Contact a Midland Mortgage Specialist to find out what the area income limits are for this program in your area.
Advantages of a USDA mortgage loan.
USDA mortgage loans offer many benefits and protections that you won’t find in other loans.
USDA loan requirements are not totally credit score driven, although it is required to have at least a 620 FICO score. USDA loan guidelines are written in a way that provides the borrower the benefit of the doubt that there had been, at some point in their past, circumstances beyond their control, and as long as the borrower has recovered from those circumstances in a reasonable manner, they’re generally going to be credit-eligible for USDA rural mortgage loan.
USDA mortgage loans require no monthly mortgage insurance.
A distinct advantage of a USDA mortgage loan, as compared to a conforming loan, is lower interest rates and no mortgage insurance. The daily USDA mortgage rates are usually comparable to, if not lower than, a conforming 30-year fixed loan.
USDA mortgage loans require no down payment.
USDA Mortgages have no down payment requirement. Most conventional loans will require at least 5-10% down.
Your trusted lending partner.
Most people will only buy a few homes in their life and each home purchase may be the largest financial decision they have made to date. So, it's understandable that you need to find an option that is right for your financial situation and the right expert to help you through the maze of home financing. That's were we come in. Whether you've purchased homes before or you have little to no experience in buying a home, we will make sure no question is left unanswered. We believe in doing the right thing, for the right reason – that means you will receive personalized service through each step of buying your dream home. We do this with a team of experienced mortgage lenders who understand the industry and will help you with what you need, what to expect and how to get in your home quickly and easily. After all, that's what we do - everyday.
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We’re ready to help answer your questions or assist you with your application. Just call us toll-free at 1-855-MY-MIDLAND or stop by any Midland banking center.
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