Get Affordable Home Loans in Oregon with USDA Rural Development

Buying a home is an exciting milestone but it can also be financially challenging especially for low- and moderate-income families in rural areas. This is where USDA Rural Development’s home loan programs can help. As part of the U.S. Department of Agriculture, USDA Rural Development offers affordable home loans to eligible applicants in rural areas of Oregon and across the country.

An Overview of USDA Home Loans in Oregon

USDA Rural Development has two main home loan programs available to residents of rural Oregon:

• Direct Home Loans – Also known as Section 502 Loans, these loans help low-income individuals or households buy, build, repair, renovate or relocate homes in eligible rural areas. No down payment is required and the interest rate is fixed and low.

• Guaranteed Home Loans – This program provides a loan guarantee to approved lenders to reduce the risk of extending 100% loans to eligible rural homebuyers Applicants work with participating lenders and benefit from competitive interest rates

Both loan programs are intended to help rural residents who are unable to secure conventional financing The loans can be used to build, purchase, improve or relocate a home.

To qualify for USDA home loans in Oregon, applicants must meet certain eligibility criteria, including:

• Having a low or moderate income
• Being unable to obtain affordable credit elsewhere
• Agreeing to personally occupy the home as your primary residence
• Purchasing a home that is located in an eligible rural area

USDA uses income limits to determine eligibility. These limits vary by county, so your income eligibility depends on where you want to buy a home in Oregon.

Benefits of USDA Home Loans

USDA home loans offer many advantages that make homeownership affordable, including:

• Low and fixed interest rates – Interest rates are typically lower than conventional mortgage rates and are fixed for the entire repayment period.

• No downpayment required – You can finance 100% of the home purchase price, eliminating the biggest barrier to homeownership.

• Flexible credit standards – Applicants with non-traditional credit or thinner credit files may qualify with proper documentation.

• No prepayment penalties – You can pay off your loan early with no extra fees or penalties.

• Payment subsidies – Eligible applicants can get subsidized payments to reduce their monthly mortgage costs.

• 30-38 year loan terms – Longer repayment terms mean lower monthly payments.

• No lender fees – You won’t pay any lender origination fees or discount points.

How to Apply for USDA Home Loans in Oregon

If you’re interested in USDA home loans, the first step is to review the eligibility requirements and check income limits for your county in Oregon. You can use USDA’s eligibility site and income limit tool to see if you may qualify.

Next, you’ll need to gather and prepare your application documents. Key documents include:

• Identification documents like driver’s licenses
• Household income verification – pay stubs, W-2s, etc.
• Credit history – at least 12 months of on-time payments should be documented
• Assets and debts information
• Property eligibility verification if you have a site in mind

There are a few options for submitting your full application package:

• Apply with approved lenders – Many lenders participate in USDA’s Guaranteed Loan program. They can assist you with the application process.

• Use a packager – Packagers are professionals trained to prepare complete application packages for submission to USDA Rural Development offices. They take care of the details for you.

• Apply directly to USDA – You can submit your application directly to USDA Rural Development by contacting a local office. They will walk you through the application requirements.

USDA must verify all your financial and eligibility information. Processing times vary but can take anywhere from 2 weeks to a few months. You’ll go through underwriting and approval steps before loan closing.

Locate USDA Offices in Oregon

To learn more and apply for USDA home loans, you can contact the Rural Development state office in Oregon:

USDA Rural Development Oregon

1220 SW 3rd Ave, Ste 1801

Portland, OR 97204

(503) 414-3300

There are also area offices located throughout Oregon that can assist you with the application process:

• La Grande Area Office
• Bend Area Office
• Salem Area Office
• Eugene Area Office

USDA also partners with many approved lenders across Oregon. Reach out to local banks and mortgage companies to ask if they are approved USDA lenders.

USDA Helps Rural Residents Achieve Homeownership

For low-income rural residents who think homeownership may be out of reach, USDA’s affordable home loan programs are worth exploring. These programs exist to help rural communities thrive by assisting eligible applicants to buy homes. If you’re ready to start the path to homeownership, contact USDA Rural Development in Oregon today to learn more and get started on your application.