100% Financing Has Never Been Easier.
Find out why millions of people are keeping more money in their pockets with a USDA loan.
What is a USDA Loan?
A USDA Guaranteed Loan is a Government insured 100%, no down payment, purchase loan. These loans are only offered in rural areas and serviced by direct lenders that meet federal guidelines. We service these loans.
USDA New Mexico Home Loans
If you are one of those home buyers who does not have the minimum down payment requirement with Conventional and USDA financing, then a USDA home mortgage loan may be for you.
USDA home mortgage loans are offered to help lower to moderate income households purchase homes in rural areas and in some cases on the outskirts of a city or in a medium sized town as determined by the United States Department of Agriculture (USDA) with NO DOWNPAYMENT requirement! USDA home mortgage loans offer many advantages to qualified borrowers looking to buy or refinance (no cash out) including:
- 100% financing
- No monthly mortgage insurance
- No asset requirements
- Gifts allowed for closing costs
- Required property improvements can be financed into the loan up to 102% of the "improved" value, which can be completed after closing.
Eligible USDA property types include single family homes and condominiums (primary residence only). USDA does have some income and property eligibility requirements. Please Contact us to find out these limits in your area of interest.
Even though a mortgage insurance premium is not required, USDA charges a 2% funding fee to guarantee the mortgage, which may be financed into the loan.
USDA Purchase Loans
How it Works
USDA purchases are primarily designed to help low income individuals and households to purchase a home in rural areas. These loans do not require a down payment but do have income and property limitations. For more information please contact us.
We specialize in serving first time home buyers with USDA loans in New Mexico. A USDA mortgage offers many advantages, as it is very popular with first time homeowners, so you should expect lower interest rates and NO DOWN PAYMENT in relation to a conventional residential home loan.
Exciting things are happening with USDA home financing – USDA is only 1 of only a few options left for true 100% financing and you’ll want to stay up-to-date with changes in loan limit increases, and USDA Mortgage news, so feel free to subscribe to our USDA blog below.
We make the process of purchasing a new home or refinancing your current mortgage simple and straight forward by offering you the latest in financial tools set forth by the best banks in our country. This will enable you to make the most accurate financial decision. Purchasing a home or refinancing your current mortgage should not be stressful.
Please contact us for up to date rates and any other mortgage questions or apply now.
USDA Refinance Loans
How it Works
USDA refinances are for rate and term refinance loans (no cash out allowed). The original loan must be a Guaranteed Rural Housing Loan. For more information, please contact us.
The United States Department of Agriculture offers several different USDA Home Loan Refinance Programs. We are here to provide you with a variety of options in order to accomplish your USDA refinance goals.
If you are considering a USDA refinance of your current loan to lower your interest rate, or restructuring your payment and equity objectives, a USDA loan with Mid America Mortgage, Inc. can help you with your USDA loan refinance and present you the most viable and beneficial options in the marketplace.
It is important to be aware of USDA current interest rates to ensure that you will be able accomplish your financial goals with a USDA mortgage refinance.
If you are having trouble meeting your monthly mortgage payments, a USDA mortgage refinance can help.
Let us help you find the solution to your needs. More information on USDA Refinances.
How USDA Loans Work
USDA home mortgage loans for rural housing are designed to keep agricultural areas in the United States strong.
The USDA Home Mortgage Loan program is made to ensure that individuals of rural communities can compete in the global economy.
This will allow for rural communities to build better community centers and facilities thus attracting more people to move to those neighborhoods.
These loans are attractive to those who have stable income and credit but don’t have enough money for down payment.
Traditional mortgage loans can be more challenging for these types of buyers because they require a down payment and are unable to have a guarantee that the loan will be paid. USDA home mortgage loans on the other hand are insured and guaranteed by the government.
Under the Guaranteed Loan Program, the Housing and Community Facilities Program guarantees and insures loans made by lenders such as ourselves.
Under the terms of the program, an individual or family may borrow up to 100% of the appraised value of the home, which eliminates the need for a down payment.
Not only people living in rural areas qualify. Those living in the outskirts of a city or in a medium sized town may also qualify. Find out if you qualify for a USDA home mortgage loan by answering a few questions without any obligations.
Difference Between "Normal" Loans and USDA Loans
While many people deciding on a loan product rely exclusively on their lenders recommendation, you should understand the basic difference between a USDA loan and a Conventional Loan.
The term Conventional Loan includes all loans under the current FNMA and FHLMC lending limits.
Most people that have heard of USDA loans tend to associate them with purchase money transactions. While purchases are the most common use, USDA loans are also available for rate and term refinance loans.
The main advantage of a USDA vs. Conventional loan is that down payment or Equity requirements are less.
In comparing a purchase money USDA loan against a Conforming or A paper loan, the USDA loan will generally have a lower payment. USDA loans will allow the borrower who has had a few “credit problems” or those without a credit history along with those with great credit to buy a home. A USDA Underwriter will require a reasonable explanation of derogatory items, but will approach a person’s credit history with common sense credit underwriting. Most notably, borrowers with extenuating circumstances surrounding bankruptcy that was discharged 2 years ago can be approved for maximum financing. Conventional A Paper financing, on the other hand, would require 4 years to have passed to be eligible for consideration.
If a borrower does have past credit issues a USDA loan may have a significantly lower rate than the alternative conventional loan. Conventional programs generally have higher interested rate of require a larger down payment or Equity position. Many of these alternative loan products have Pre Payment penalties where as a USDA loan do not have such penalties.
Areas We Serve
We service USDA loans in the entire state of New Mexico.
Here are a just a handful of the cities that we specialize in:
Danny at Mid America Mortgage, Inc. really took the time to explain to us how USDA loans work. From start to finish, we owned our very first home in a little over a month...and the best part was that we didn't even have to dip into our savings for a down payment. By far, one of the best loan programs out there.
Las Cruces, NM
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No Money Down. Super Low Rates. It's a No Brainer.