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The #1 Guide To Getting Approved For The Best USDA Rural Development Home Loans Available!

 

You’re Looking To Build, Buy, Refi, Or Renovate, So Why Choose BuildBuyRefi Over Other USDA Home Lenders?

 

We Provide The Most Fast Closing USDA Loan Programs Of Any 50 State Bank, Working 7-Days A Week Around Your Schedule, Not Ours!

 
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If you visited other websites looking for this type of loan, you would notice most start out with this one question: What is a USDA home loan?

Short answer, its a mortgage loan backed by the US Department of Agriculture to encourage homeownership in rural development areas, and we are happy you searched for the term and found us. We want to go steps further than other banks by focusing on the more important aspects you want to know can and how will you get approved at a low attractive rate and term. As an FDIC Insured Bank, we lend on USDA eligible homes in all 50 states.

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This USDA Rural Development Home Loan Guide is designed to provide the information you need to make the best possible decision on who you choose to handle your loan. We aim to take the small-town bank approach with the more significant 50 state bank risk, especially on USDA loan types.

We’re probably not the first company you found when starting your online loan search if it is, we’re lucky to have found each other first. Many lenders that advertise for this property type who provide “not so great options” so let’s get right to it and first take a short quiz to see if you are in the right place.

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How Do I Know If I Will Qualify For A USDA Rural Development Home Loan With BuildBuyRefi?

Respond “YES” To Each Of The Top 4 USDA Qualifying Questions And Your One-Step Closer To Getting The Best USDA Rural Development Loan BuildBuyRefi Has To Offer.

Respond “NO” To Any Of These Statements, And You May Still Qualify!


(1). You’re looking to Build, Buy, Refi, or Renovate, but not take Cash or consolidate debt.

The USDA offers many programs, but the one program they will not finance is a cash-out or debt consolidation loan. In such instances where you are already on a USDA mortgage and want to pull out cash or consolidate debt, you will need to look at other programs like Conventional, FHA, VA, or home equity lines of credit. There are no exceptions to this rule under current guidelines.


(2). Your property is in a designated USDA Rural Development Area.

The starting basis for a USDA loan is determined solely by designated USDA rural development areas in each county. The USDA does not lend in any area outside of those identified by the Rural Development guidelines. To learn if you are in a qualified area, contact your USDA banker, or refer back to the appropriate USDA site, plug in your zip code of the property and you will know if it qualifies.


(3). If you’re looking Get A USDA loan for a Manufactured home, Your Buying A Brand New Home.

If you are looking to buy a manufactured home and use a USDA loan, it is required to obtain a brand new manufactured property, not pre-owned. However, there is an exception to this rule as the USDA currently has a PILOT program that operates in a few specific areas only. States currently participating in the pilot program for pre-owned manufactured homes include Colorado, Iowa, Louisiana, Nevada, New Hampshire, New York, North Dakota, Ohio, Pennsylvania, Texas, Vermont, Virginia, and Wyoming. Rural Development is now expanding the pilot to include additional states.


(4). Your loan request is greater than $80,000. 

RARE occasions we loan down to 60k, but we have found that the higher rates below $80,000 cheat you out of getting a much more beautiful home. Sure you may have your reasons like buying a home for a friend, the property is cheap and exactly what you want, or you have a deal too good to be true. But does that loan make financial sense?

If you are seeking a loan under $80,000, maybe you can qualify for a USDA Escrow Repair loan, allowing for 10% over your loan amount for eligible repairs and upgrades. The USDA Escrow Repair will enable you to upgrade your new home purchase or renovate your existing home up to 10% over sales price or existing value, thereby increasing your loan amount, equity position, home value, and lowering your rate at the same time.


Great, if you answered “YES” to each of these, you passed the first part of our pre-approval quiz. If you have a “NO” somewhere, then call us now, or take our eligibility checker to discuss your situation. Answering “NO” doesn’t mean you won’t qualify, it just means we need to find out which area is impacting your request.

Before we discuss the programs, we offer, and we offer EVERY Manufactured Loan imaginable which meet’s the above requirements, let’s review the most important ways to make the process as smooth as possible.

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How Do You Guarantee I’ll Be Pre-Approved & Close Fast With A Low USDA Interest Rate?

First, There Are No Guarantees Because There Are Many Unknowns.

Any banker or loan officer providing you a guarantee is probably someone you want to avoid. It’s not guaranteed until you’ve met all conditions and closed your loan. But let’s discuss further how you can get the results you are seeking.

If You Want The Best, Then There’s A Need For Wicked Fast Speed, And Here’s Why!

Applying and getting pre-approved for a USDA loan is only the first step in the process, it doesn’t guarantee you’ll get the rate, terms, or program were pre-approved for initially.

Many factors go to achieving that low rate and great program you wanted, and that is “the speed in which YOU move.” Time plays against every borrower in a big way with any loan.


Learn The 4 Most-Important Reasons To “Light The Fire” And Take Fast Action On Your USDA Home Loan Pre-Approval!

  1. Rate Locks Expire: Most loans are locked for 30 days because the shorter term allows you to get the lowest rate possible. If you lose your rate lock by letting it expire or needing to extend it because you took weeks getting the items back, it will cost you more money or a higher rate. With rates recently on the rise, a higher price could even make you no longer eligible for the loan you wanted. A long delay could require you to re-qualify for the loan again.

  2. Programs Could Disappear: It’s happened before, we’ve witnessed a whole host of loan programs get wiped out overnight. Investors can choose to change their risk portfolio and stop offering programs altogether, that is why moving fast on the approval you have in your hand means taking action.

  3. Your Job or Income Status Could Change: What if you lost your job, your income reduced, or you wanted to take a new job, but it put your loan closing in jeopardy because you took too long? Any of these changes in your employment status could come back with more unfavorable terms, or worse, a complete loan denial.

  4. Your Credit Score Could Dramatically Change: We’ve seen this happen many times before, a borrower maxes out their credit card for business, or they miss a payment because they weren’t paying attention, or judgment/collection was filed for many reasons. Not closing quickly under the same credit terms is another reason for underwriters to require you to re-qualify or cancel the loan.

BuildBuyRefi review and testimonial for Richie Duncan.
BuildBuyRefi Review and testimonial for Saif Kovach.

Follow These 3 steps to Get the lowest USDA Home Loan rates possible today.

  1. Find a lender you feel confident in and apply to get pre-qualified from that lender. Make sure the lender has the program you want, they don’t sound confident they can close this program and have the reviews to back it up, then keep looking! You may want to check out our reviews to help give you this confidence.

  2. Request a rate lock on your loan once you are pre-approved and get your lender every item needed as fast as necessary to close your loan, so your rate lock doesn’t expire. Your side of the process is only complete when the loan is closed, not when you think you sent enough documents to satisfy what the lender is requesting.

  3. Take responsibility and move fast, as you know rates have been on the rise as of lately. Wait too long, and you could end up with a higher interest rate, therefore qualifying for a smaller loan amount than if you locked in faster on a lower price. It’s your job to ensure you meet all requirements, not the loan officer or lenders position to hold the file open as long as possible paying for the rate lock extension out of their pocket. Locks cost money because your lender is reserving the funds and rate you wanted. It’s your responsibility to ensure you move fast as not to let that lock expire or it could end up costing you.

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What Style Of Homes Do You Lend On?

BuildBuyRefi Will Loan On These 4 USDA Rural Development Property Types.

(1). Single Family & Modular Homes

    • Any site built or modular home, built on or shipped to the current location. There are no age restrictions on these properties; however, they cannot be mixed-use, demolished, razed homes, co-op’s, investment, or on structures relocated to or from another site.


(2). Manufactured Homes

    • Any brand new single-wide or multi-wide manufactured home larger than 400 sq. ft., and if pre-owned in a pilot state, built after June 15, 1976. Property cannot be on leased land or in a trailer park and must be on a permanent foundation.

(3). Multi-Unit Properties

    • Any property consisting of 2, 3, or 4 units, for example, a side-by-side or top and bottom duplex are allowed as long as one of the units are owned and occupied by the primary borrower, meaning the primary borrower occupies 1 of the units full-time.


(4). PUDS, Townhouses & Condos

    • Any approved PUD, townhouse or condo must be approved or accepted by HUD, FHA, VA, Fannie Mae, or Freddie Mac. It is essential that these properties, while rare are located in designated Rural Development areas only to use the USDA.

*Modular homes are not considered manufactured homes, they fall under the same category as a Single-Family Home and do not have the same restrictions as Manufactured Homes. Every program available to a Single-Family Home extends to Modular.


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The 6 USDA Rural Development Loan Products We Offer, and How To Determine Which Is Best.

Our Most Popular USDA Rural Home Loan Products & Details.

You most likely already have an idea of what loan program you need, want, or would like to have. But for those who are just learning about these program types, we want to explain them in more detail.

Get a manufactured home loan for your purchase with BuildBuyRefi.com

#1. USDA Purchase Loans

  • A purchase loan is for buying a new primary residence only as a second home, or investment properties are not allowed. A standard purchase loan is most commonly utilized for a house that is already built; however, they can be used in conjunction with the USDA repair escrow renovation or a USDA one-time close construction program. Read more about these programs below.

Complete a VA IRRRL Streamline, FHA Streamline or USDA Streamline Assist refi for your manufactured home from BuildBuyRefi.com

#2. USDA Streamline Assist Refinance Loans

  • A streamline refi is strictly for those looking to lower their interest rate or modify their loan term only. No cash-out, debt consolidation, or renovation is allowed, and it should be noted that the USDA does not allow cash-out on any of their programs, yet, if you are looking to stay in a USDA loan and make improvements you will want to review the USDA repair escrow program. We offer the USDA streamline and repair escrow refinance for all property types mentioned above in all 50 states. Additionally, pre-owned manufactured homes are allowed if the original loan was with the USDA.

Complete a VA Renovation, FHA 203k Loan, or USDA Rehab for your Manufactured Home with BuildBuyRefi.com

#3. The USDA Repair Escrow

  • The USDA is much more different to the FHA & VA counterparts as the maximum allowable repair limit is 10% of the purchase price/loan amount. Repairs that are to be completed must be of a non-structural and non-luxury upgrade nature. For all scenarios, the property will be appraised based on the work already have finished, and the loan amount will not exceed 100% of the “after improved value.” Rolling updates and repairs into one loan, in many cases, makes more sense than qualifying for a 2nd mortgage also known as a home equity loan and comes with one low fixed rate mortgage.

  • The USDA Repair Renovation Loan product only allows for a term of 30 years, will come with applicable USDA guarantee fee and appropriate USDA mortgage insurance. To remove the required MI once you get below 79% loan to value you would need to refinance to a new program away from the USDA.

  • For purchase and refinance loans this product can be used for minor interior and exterior repairs completed by only one licensed and bonded General Contractor (GC) which may be able to handle multiple subcontractors if required underneath the GC. The borrower cannot complete any of the repairs themselves or act as the general contractor, and ALL improvements must be complete in a six month time. The work must begin within 30 days of the closing of the loan, and must not cease for a period longer than 30 days. The GC must submit a qualifying bid outlining all work to be completed within the 180 day period. Additionally, there is a 1.5 times (or 50%) overage for all repairs will be held in escrow. Seller contributions are allowed on purchase loans.

  • Eligible improvement types are: This is where the USDA is a bit different since you are only allowed up to 10% over the purchase price or refinance amount the options are limited to interior and exterior upgrades with no structural changes. Things that are caught at the time of inspection and are needing repair, or carpet upgrades, appliance repairs/updates, and other cosmetic updates can be allowed given the borrower and property meet our underwriting criteria.

  • Ineligible improvements that are structural or considered luxury are not allowed. These would be foundation/structural, electric, and plumbing repairs, or any repair that affects the livability of the structure,

  • Eligible property types 1 unit Single Family Property, Condos approved by FHA, VA, HUD, Fannie or Freddie and new manufactured homes that are singlewide or multi-wide units. Any existing manufactured property that is not new could only qualify under the USDA pilot program which currently restricts locations for existing manufactured homes to qualifying states.

  • Ineligible property types are 2, 3, 4 unit properties, demolished or razed homes, relocated structures, mixed-use properties, commercial properties, co-op properties, investment property, mobile homes on leased land, and non-FHA approved condominiums.

  • There are specific requirements of the General Contractor, Insurance and Liability Requirements, Appraisal Requirements, Bid Requirements, Inspection, and Disbursement Requirements, and certain fees can be rolled into the closing. You will want to discuss these additional requirements with your banker once you have decided you are ready to move forward. Additionally, since these loans are underwritten as Purchase or Rate and Term Refinance loans, the maximum allowable cash back to the borrower cannot exceed $500.00 except in the state of Texas where the amount is $0. This product is not offered in Hawaii*.

Complete a one time close or single close construction loan with your manufactured home and land with buildbuyrefi.com

#4. USDA One-Time Close (OTC) Construction Loans

  • Construction loans are for those ready to undertake the exciting process of choosing the exact plot of land to build and designing the custom facets of the home they wish. It’s also available if you already own your land and want to combine everything into one low rate loan. We offer up to 100% USDA one-time close construction loans for land & the complete build-out, or in the case of a manufactured property, the construction and permanent location of the unit to your site.

  • Our most popular loan program every requested is the BuildBuyRefi One-Time Close Construction Loan, also known as the Single Close Construction Loan. This product type allows borrowers that currently have a credit score less than 720 (standard construction requirements) but above a 620 credit score now to build their own home exactly how they want it, where they want it. 

  • Instead of the three loans, like a traditional construction loan, we complete everything in one closing. That’s right, just one single closing! Find the land you want, or if you already have it, build the home you want and roll it into one loan. No more separate loans, separate costs, different appraisals, and most importantly, no separate qualifying for each loan in the process. 

  • You can lock in your final interest rate now before rates rise, which you can not do on construction to permanent financing before you started to break ground. While the costs can be higher than traditional loans, you won’t find many 100% USDA construction programs offered in the market today as you will with BuildBuyRefi.

Manufactured Home loans for large Acreage or land areas, contact BuildBuyRefi.com today.

#5. USDA Home Loans For Large Land / Acreage

  • Don’t let a property that is on large acreage pass you by, contact us if you want that single family, modular, or manufactured home on more extensive tracts of land but your realtor is trying to steer you away. They aren’t making any more land, and you want to get it while it’s available and we want to loan against it for you.

Tiny Home Loans for manufactured property 400 sq. ft. or larger with BuildBuyRefi.com

#6. USDA Manufactured Home Loans

  • If you have a Manufactured Home that is 400 sq. ft. or more substantial and it is brand new, or pre-owned in the qualifying PILOT states we will fund up to 100% in one loan for purchase, and streamline refinance property, as well as allowing the one-time close construction loan to work when buying from a new manufactured home retailer and moving to a new plot of land. Remember we cannot loan on any manufactured home that is not on a fixed-foundation, has been moved more than once, or that is on leased/rented land, or in a trailer park. Unfortunately, the USDA has no exceptions to these guidelines.

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What Credit Score & Income Is Required To Get Approved For A USDA Home Loan?

Generally, we want Your minimum “middle of the 3” credit scores To Be Higher Than A 600 fICO.

My middle credit score is above 600, what rate can I get?

The rate you qualify for depends on many factors since rates fluctuate daily, sometimes multiple times a day, the quote you receive today most likely will be different tomorrow. That is of course if you have not locked in your loan.

Borrowers with a 600 credit score may see a little higher rate than those with a 620, 680, 720, and so on. This is because investors offer better rates the higher your score is. They do this because those with higher scores have proven to be of lower credit risk than those with higher scores.

Many people who buy a loan with a lower credit score that has a higher rate could raise their credit even if they took out a 100% loan six months to a year later. In cases where that happens, we are always working with our existing clients and reviewing market conditions to offer an internal streamline refinance.

Choosing the USDA Streamline Assist Refi is most useful to lowering a borrower’s interest rate, and in most instances will not require a new appraisal as you're only adjusting the rate and term.


Do you Provide bad credit USDA Loans? What is the lowest score you accept?

Can we lend lower than 600? 

Unfortunately, there are no exceptions to the credit score rule with USDA guidelines.

Typically when a borrower has a score under 600 a few things happen. 

#1. The interest rate we can offer becomes too high.

  • The pricing adjustments that come for lower scores and loan amounts become a high risk for the lender. And due to us offering the best programs government-backed lending has to offer, we stay away from dancing with any loan that targets what the government deems to be high costs.

#2. The borrower has limited to no credit, or the credit trade-lines they have are not acceptable to our current underwriting guidelines.

  • It’s even true that some people can have a 640 credit score with limited or no trade lines could get a loan denial, but it is essential to show our underwriters you can make payments on time and are at low risk for defaulting on your home loan.

#3. The borrower could be a few steps away from a much better credit score.

  • It's possible that if you fall under the 600 FICO threshold and could be some areas that credit repair may help you become more attractive to approving lenders. In many instances, you don’t have to go through a 3rd party credit repair company as today’s lenders have tools to help you determine what moves you can make on your own to improve your score. Do what is needed and not only would you get a lower interest rate, you could qualify for a more substantial loan amount with better home options than if you settled for borrowing with worse credit.


The 5 Acceptable Income Types When Applying For A USDA Rural Home Loan.

While we accept almost every income type when verifying and approving these types of loans, the two we won’t loan on are stated income loans or bank statement only loans.

  1. W2 Full Time & Part Time Employees 

  2. Self Employed

  3. Active Military Income

  4. Retirement, Pension, 401k regular disbursement income

  5. Social Security or Disability income

It’s important to note that any change during the process in employment status such as getting fired or switching jobs is grounds for denial or re-underwrite. You want to avoid any change in your job status while completing your loan, and if there is the slightest chance something might change you need to speak to your loan officer immediately about this.

Do not assume that because you are getting a better job offer that your loan will still be approved. Changes like these scare underwriters and will increase the amount of documentation you would need to gather, it could delay your closing, cost you a rate lock, or you could lose your purchase money escrow altogether.

You will save thousands in lost time and money by being as upfront as possible with your loan officer. 

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What Sets BuildBuyRefi Apart From Other USDA Rural Development Home Loan Lenders?

Aside From Working 7-Days A Week On Your Schedule, We’re Experts On The Most Popular USDA Rural Home Loan Programs To Hit Today’s Mortgage Market!

The Truly Determined Borrower Ultimately Wants The Best Rate & Loan Term Possible, And At BuildBuyRefi, We Offer Some Of The Best Customer Service On The Market Today.

We Won’t Leave You Guessing What Is Going On!

You may ask, why do other lenders and even my local bank offer high-interest rates, shorter terms, or require a higher down-payments?

That’s a great question!

Short answer, because they aren’t the experts in USDA home loans. 

Longer answer…

The Top 3 reasons why other USDA home Lenders Find it hard to Compete with BuildBuyRefi.

Other Manufactured Home Loan Rates just don’t compare to those at BuildBuyRefi.com

#1. We have Some Of The Most competitive USDA products, rates & loan terms:

  • Most lenders, brokers, and banks only have a few programs, indeed not offering anything near the vast array of USDA rural loan products we have. Their rates are higher and loan term shorter because they can’t touch the monthly volume we produce. They don’t offer the high loan-to-values because they still view this property as the less desirable, increasing their perceived risk.

BuildBuyRefi.com are manufactured home loan lenders and seasoned experts, other’s just aren’t!

#2. We have seasoned USDA loan veterans Standing Ready To Work With You:

  • Most are not seasoned veterans in the USDA lending sphere, meaning the loan officer you worked with might never have closed one of these properties before, that could work against your goals. You need a banker that knows how to navigate these programs and most of our bankers have 15-30 years experience each lending on rural development properties.

We lend against manufactured homes, other lenders just don’t. Contact BuildBuyRefi.com today!

#3. We Want To Help You Actively Fund Your USDA Loan, Regardless Of Property Type:

  • Your local bank or credit union may be acting like they are doing you a favor to keep you with them, but they don’t want rural property type on their books. In many cases, rural properties can take longer to sell and so the bank you are working with may talk you into putting more money down or taking a higher rate saying they’re making an exception to the guidelines. In this case, their inability to be competitive is costing you more just by staying loyal. And while we love loyalty, we feel you shouldn’t take a rate that is 2-5% higher requiring 20% or more down to sacrifice for that loyalty.

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5-Star Lender Reviews That WOW!

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Richie, OK... so you've officially done something I've never seen in 22+ years selling real estate. Closed a VA Loan on 224 Acres, with a Manufactured Home. CONGRATULATIONS! and THANK YOU!!! Admittedly, I was skeptical (more like pessimistic) when James told me you were going to get this VA Loan completed. And I had many doubts along the way, because I'd seen so many VA Lenders fall flat on their faces, just before the Closing. BUT... You got the Job DONE! Occasionally, I find someone out there who has done an Outstanding Job, helping my Clients... and You are one of these! I'm now officially a FAN of You and Your Work. I would be honored to promote you and your services to other Agents within our company, and I intend to do so. I will call you when I've caught up on my work a bit... and learn more about how I can do my job better on the next VA transaction.

~Tom K. Realtor