• The USDA rural housing loan, also known as a rural development loan is designed to assist first time home buyers in rural areas of the state obtain affordable housing. It is the perfect loan for first time home buyers in MN.

    The best part is there is no down payment needed with a USDA loan

    Need help applying for a USDA Loan in Minnesota? Do not go it alone. Cambria Mortgage, and out highly trained USDA loan experts are here to act as your guide.
    By obtaining a USDA Rural Development loan, Minnesota residents can obtain a ZERO DOWN PAYMENT government funded home loan that also allows you to roll your closing costs into the loan.
    Most homebuyer using this loan program obtain their home with less than $1,000 out-of-pocket!
  • MInnesota areas that Qualify for USDA Loans

    The term "Rural Development Loan" can be somewhat misleading.  The USDA loan is not just for Minnesota farmers, and you don't need to live in a cornfield.
    Large areas of Minnesota qualify for the USDA Rural Housing loan. In general, communities located outside of major metropolitan areas, and communities less than 20,000 residents may qualify.
    Never assume your area doesn't qualify for a USDA loan.  Call our USDA experts at (651) 552-3681 to discuss location eligibility questions, or check on the USDA web site.

  • Check the location you want to buy for eligibility. Exact addresses are best, but you can use the map for generalized areas too.

  • Minnesota's USDA Loan Income Limits

    The USDA Rural Development Loan is a "means tested" program. This means there are income guidelines, and if your household makes too much money, you will not qualify.
    The good news is, the income limits are very liberal, and most families will qualify for the USDA zero down payment loan program.
    The income guidelines vary by both county the home is located, and your family size. Never assume your family doesn't qualify for a USDA loan. Note that income eligibility is based on household income. So if a spouse has income, but isn't going to be on the loan, their income is still counted towards program income limits.

    Call our USDA experts at (651) 552-3681 to discuss location eligibility questions, or check use the link below to check income limits.

  • Type of Home the Qualifies for a USDA Loan

    The home must be on a publicly maintained road, or in a development with private roads. It must be a single family home (no duplexes), must be owner occupied (no investment homes), and may not produce income.
    No business can operate on the property.  A hobby farm is OK, but agricultural land that is getting farm income (even from renting part of the land), or any property that will be farmed is not OK.
    Properties that have a significant number of building other than the home itself, such as pole sheds, old barns, and old silo's can be an issue with the USDA Loan. 

    Call our MN USDA Loan Experts at (651) 552-3681 to discuss any questionable properties BEFORE signing a purchase agreement.

  • Unacceptable Credit Items for a USDA Loan

    If you have any of the following items, you automatically do not qualify for the USDA loan in MN, WI, or SD.  You may qualify for other loans (like an FHA loan), so be sure to contact us for more information on other loan options:

    • Poor Credit (middle credit score BELOW 620)
    • Delinquent Government Debt (back taxes, student loans)
    • More than 2 late mortgage or rent payments in the past 12 months
    • Any credit account turned into a collection account in the past 12 months
    • Unpaid Tax Liens (must be paid off to buy)
    • Foreclosure less than 3-years old
    • Bankruptcy Chapter 7 less than 3-years old Bankruptcy Chapter 13 less than 1-year old
    • You have more than 20% of the purchase price in the bank (this does NOT include retirement accounts like a 401k)
  • Paying USDA Loan Closing Costs

    All mortgage loans have closing costs, including USDA loans. Lender fees, appraisal, credit report, title company, state taxes, origination fees, and more.
    These need to be paid for by you the home buyer. The best way is always for the buyer to pay cash.  But as most first time home buyers have limited funds, you are also allowed with a USDA loan to roll the closing costs into the loan with "seller paid closing costs." 
    You can also pay them by taking a slightly higher interest rate. Under these two options, you are still paying for the closing costs, but you are essentially paying over time versus cash out of pocket today. How cool is that?
    Most homebuyers using a USDA Rural development program in MN buy their home with less than $1,000 out-of-pocket.

  • USDA Rural Development Loan Application

    Ready?  We can take your loan application by calling our USDA Loan Experts at (651) 552-3681, you can fill out the USDA Loan Online Application, or you can visit us in our USDA Loan Office in St Paul, MN.

  • HUD, The VA, and the USDA requires those who offer their mortgage loans go through a stringent approval process. We are an approved FHA, VA, and USDA mortgage lender. We are not acting on behalf of, or under the direction of the VA or the Federal Government. HUD / FHA and the VA do not lend directly to the public, only through approved lending institutions like Cambria Mortgage. 

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