Rocket Mortgage is one of the largest and most popular online mortgage lenders in the U.S., but USDA loans are not part of their loan offerings. While Rocket Mortgage provides a wide variety of mortgage options, including conventional, FHA, VA, and jumbo loans, they do not currently offer loans backed by the United States Department of Agriculture (USDA).
If you’re interested in a USDA loan, here’s what you should know and some alternative options to consider.
What Are USDA Loans?
USDA loans are designed to help low- to moderate-income borrowers purchase homes in eligible rural and suburban areas. These loans offer several benefits:
- Zero Down Payment: USDA loans are one of the few loan types that require no down payment.
- Low Interest Rates: Backed by the government, they offer competitive interest rates.
- Flexible Credit Requirements: More lenient credit standards compared to conventional loans.
USDA loans are ideal for borrowers who meet the income and location requirements set by the USDA.
Why Doesn’t Rocket Mortgage Offer USDA Loans?
Rocket Mortgage focuses on providing conventional and government-backed loans that are most commonly requested by borrowers. While they do offer options like FHA and VA loans, USDA loans target a more specific audience and require specialized processing that Rocket Mortgage has chosen not to include in their portfolio.
Alternatives for USDA Loans
If you’re set on applying for a USDA loan, consider these lenders known for their USDA offerings:
- Guaranteed Rate
- Offers USDA loans with competitive rates and an easy online application process.
- Caliber Home Loans
- Known for its USDA loan expertise and personalized service.
- U.S. Bank
- A trusted national lender with USDA loan options for rural homebuyers.
- Veterans United Home Loans
- Specializes in VA and USDA loans for eligible borrowers.
- Local Credit Unions and Banks
- Many regional lenders offer USDA loans with tailored services for rural areas.
Rocket Mortgage Alternatives for Rural Areas
If a USDA loan is not required but you’re looking for other rural-friendly options, Rocket Mortgage might still be a good choice. Consider:
- Conventional Loans:
- Ideal if you have strong credit and savings for a down payment.
- FHA Loans:
- Require a low down payment (3.5%) and are accessible for borrowers with moderate credit scores.
- VA Loans:
- Perfect for eligible veterans and active-duty military personnel, offering zero down payment and competitive rates.
How to Decide?
To determine the best loan for your needs:
- Check USDA Eligibility: Use the USDA’s property eligibility tool to see if the area you’re interested in qualifies.
- Compare Lenders: Look for USDA-approved lenders with strong customer reviews and competitive rates.
- Evaluate Your Goals: If you don’t qualify for USDA loans or want a streamlined online process, Rocket Mortgage may still meet your needs with FHA or conventional loans.
Conclusion
While Rocket Mortgage doesn’t offer USDA loans, they remain a strong contender for other loan types due to their user-friendly digital platform and excellent customer service. If a USDA loan is essential, explore alternative lenders specializing in rural housing loans. Make sure to evaluate your financial situation, property eligibility, and loan options to make the best decision for your home-buying journey.
