USDA Mortgages are loan products which are guaranteed by the United States Department of Agriculture (USDA).  USDA created the Single Family Housing Guaranteed Loan program in 1991, in an effort to expand access to mortgage financing in rural areas.  Lenders are protected against loss in the event of a borrower default by USDA’s loan guarantee fee, which functions similarly to mortgage insurance.  USDA’s loan guarantee fee is paid by the borrower as an upfront guarantee fee (typically financed as part of the loan and USDA’s annual guarantee fee (paid monthly as part of the payment).  The borrower’s household income must be below the USDA limit, and the subject property must be located in a USDA eligible area.  USDA Mortgages can be used to Purchase, Build, Refinance ore Renovate residential properties which will be primary residences.

**Sierra Pacific Mortgage Company, Inc. is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.