Purchasing a Home with the Help of the USDA

Are you ready to purchase a home, and located in a rural or suburban area? If you are, you may be able to qualify for a unique home loan program offered by the U.S. Department of Agriculture, (USDA). USDA loans can offer many advantages for a home buyer, including a zero down payment. If you are located near Orchard Park, New York, and interested in learning more about your mortgage options, Nickel City Funding, Inc. is here to help. Read on to learn more about buying a home with a USDA loan.

How Do USDA Loans Work?

scott-webb-1ddol8rgUH8-unsplashUSDA loans are a no down payment financing option available to qualifying rural and suburban home buyers. They are a type of non-conventional loan backed by the government, (through the USDA Rural Development Guaranteed Housing Loan Program), created with the intention of improving both the economy and rural American life. The goal of the program is to help lower to moderate income families obtain a mortgage. Since USDA loans are insured by the government, and lenders are guaranteed to be paid back in the event that a home buyer is unable to make mortgage payments, lenders are able to offer loans to borrowers who have less than stellar credit. Homebuyers can use a USDA loan to help finance the building of a new home or the purchase of a home that has been already constructed.

What Are the Benefits of a USDA Loan?

There are many advantages when it comes to obtaining a USDA loan. In addition to having a zero down payment amount, USDA loans have lower overall loan costs and lower interest rates. Additionally, they also offer lower private mortgage insurance rates, (PMI), and you may have the option to finance the insurance premiums. Also, USDA loans have less restrictive credit requirements, allowing borrowers that may not typically qualify for a traditional loan the opportunity to buy a home.

Eligibility Requirements For USDA Loans

Common eligibility requirements to qualify for a USDA loan typically include:

  • The home must be located in a lending area that is USDA eligible
  • A credit score of 640 or higher is required
  • A borrower must verify that they have steady income for a minimum of the past 24 months
  • You must make a mortgage payment that is 29% of your monthly income amount
  • As a borrower, you must be a citizen of the United States


Get Assistance With a USDA Loan Today

USDA loans can be a great pathway to home ownership. If you are interested in learning more about your mortgage options in and around Orchard Park, New York, contact Nickel City Funding, Inc. today for a consultation.



Registered Mortgage Broker-NY State Dept. of Financial Services. All loans arranged thru 3rd party lenders. NMLS #1586

Equal Housing Lender

Contact Us

Nickel City Funding, Inc.
3460 Seneca St.
West Seneca, NY 14224
Phone: 7165585200


M-F: 8:00 am - 4:00 pm
SAT: 9:00 am- 2:00 pm
SUN: closed