USDA Loan | Personal | Redstone Federal Credit Union

Program Details:

Homes must be located in USDA defined rural area
Income restrictions (you can earn too much to qualify)
Must be your primary residence
No down payment
Flexible credit score requirements

USDA loans are available to individuals of modest means who are buying homes in rural areas. While property eligibility is determined by the USDA, many neighborhoods and communities meet the requirements. Contact a member of our Mortgage Team to find out if your dream home is in just the right spot.

Mortgages are only available for properties located in Alabama and Tennessee.

Loans subject to credit approval. Must be eligible for membership and open a savings account to obtain a mortgage loan product. A $5 minimum balance is required to open and be maintained in the savings account at all times. Fees and other restrictions may apply. Annual Percentage Rate (APRs) are determined by an evaluation of applicant credit at account opening. Fixed APRs are fixed for the life of the loan and adjustable rates are subject to change after consummation. Other restrictions may apply. Rates, terms, and conditions are subject to change without notice. RFCU is an Equal Opportunity Lender. Contact Credit Union for details. Various types of mortgage loan programs and terms are available. USDA Funding fee may be required.

Rates current as of September 1, 2018.

A typical purchase transaction example for 30 Year RD Loans:
The information provided assumes the purpose of the loan is to purchase a property, with a loan amount of $101,010 (financing the upfront guarantee fee) and a purchase price of $100,000 (assumes a 0% down payment). The property is located in AL and is within Madison County. The property is an existing single family home and will be used as a primary residence. The rate lock period is 45 days and the assumed credit score is 750. For a 30-Year Fixed Rate RD Loan, with a $1,010 financed Guarantee Fee, at 4.500% with zero discount points, the APR is 5.094%. The monthly payment schedule would be 359 payments at $511.80 and 1 final payment of $514.01. An escrow (impound) account is required and thus the actual monthly payment will also include amounts for real estate taxes, homeowner's insurance, and the RD annual guarantee fee. RFCU® is NOT affiliated with any government agencies, including RD.

USDA Approved Lender. Redstone Federal Credit Union® is not affiliated with any government agencies, including the USDA. The USDA and Redstone Federal Credit Union are separate entities.