Contact Us
Contact Us

Homestar Financial Corp.
249 W Shadburn Ave.
Buford, GA 30518

Main: (678) 513-0117
Fax: (678) 513-0119

NMLSR: #70864
Florida ML: #MLD275
North Carolina: #L-143335
Branch NMLS: #378170
Georgia Residential Mortgage Licensee #55900, Branch #25920 MLO

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USDA Home Loan

USDA Home Loan - Property Requirements

With a USDA Home Loan you can purchase a new or existing home that you intend to live in. It is available to help families buy a home with No Down Payment in Rural Designated Areas.

While most homes will qualify for this program - there are a few items you should be aware of to avoid any surprises down the road.

  • You must occupy the home. (No Rental Properties)
  • The home may not be located in a Flood Zone.
  • The home may not be used for income producing purposes. (Farm, Rental,etc)
  • Streets & Roads should be paved, but can have an all weather surface such as gravel if it is typical for the area.
  • The property may not be subdivided.
  • If the home is on a larger piece of land such as acreage than the value of the land cannot be more that 30% of the total value. For Example:

Lets say you find a nice home on a one acre lot. If the purchase price of the home is $250,000 than the value of the land cannot exceed $75,000. This is not a very common problem but it is something to be aware of since allot of the homes in these "rural" areas tend to be on larger lots.

There you have it! You can buy a nice home in a rural area with No Down Payment, a Lower Monthly Payment and save a ton of money.

Never assume that you or the home you would like to purchase will not be eligible for a USDA Home Loan. Always speak to us first or view the following website to check on the address/area- property eligibility calculator.

USDA Home Loans - Rural Property

USDA Home Loan applicants are often misled by the term "rural." USDA Rural Development says a rural area includes open country and places with a population of 10,000 or less and towns and cities with a population between 10,000 and 25,000 residents. Don't let that scare you off before exploring the areas that are considered eligible. There are allot of areas that are considered "rural" that are actually quite the opposite of that designation.

USDA has a great property eligibility calculator that can help you determine if a property is eligible just by inputting the address. This is a great tool for those properties that might be just on the border of a "rural" designated area.

There really are not any exceptions to this rule but at the same time it doesn't mean you have to buy a home out in the middle of the country. Remember, there is no down payment required and a lower payment with a great 30 year fixed interest rate.

Never assume that you will not qualify for a USDA Home Loan with out talking to us first.

USDA Home Loans - Experience Rural

Not sure if the "Rural" life is for you. Summer time is a great time to get out and enjoy our Beautiful State. Take a day and go for a drive, experience the rural life. Visit some of the areas designated as rural. There are always festivals and celebrations that you can attend in our small cities and towns. This is a great way to get to know a community and the residents who live there.

Street Fairs, Parades, BBQ's, Car Shows, Live Music, Ice Cream Socials and Fireworks!

Choose your destination! There are several areas that qualify for the USDA Home Loan. Again, we have provided a USDA Property Eligibility Calculator to help you determine which areas are currently available for the USDA Home Loan.