Do I qualify for USDA?

USDA Home Loans

If you’re looking for a home in a rural area then consider a loan through the US Department of Agriculture. Advantages are strong and concerns are consistent with other home loan options.

Upsides of a USDA Mortgage Loan

No down payment.
Fair Credit Okay with scores as low as 620 possibly qualifying.
Closing costs can be financed.
No penalty for prepayments
Your interest rate can never go up. It’s fixed.
No maximum loan amount, no need for ‘qualifying assets’.

Frequently Asked Questions

Is a modular home on a permanent foundation eligible?

Yes, for property eligibility purposes, modular homes are treated the same as stick-built homes.

Is the USDA Rural Housing program only for first-time home buyers?

No! the program can be used by any qualified home buyer – not reserved for only first time homeowners. However, applicants that currently own a home that they plan to retain will have additional restrictions.

Is there a limit on seller concessions?

Seller contributions (or other interested parties) are limited to 6% of the sales price.

Are medical collections required to be paid?

No, Rural Development does not require medical collections be paid for any type of submission

What does the USDA require for employment eligibility?

If you’re still working, you must establish employment to be eligible for the USDA loan, and most lenders will require a minimum of two years of steady employment. If you are self-employed, you are eligible, but will be required to provide two years of federal tax returns to verify your income. Retirees may be able to obtain a USDA loan provided they have sufficient stable income.

USDA

Concerns of a USDA Mortgage

The property must be located in a designated rural area.
A maximum annual income limit applies. Families of 1-4, the annual income limit is $103,350 but can be as high as $136,600 for families of 5 or more.
Mortgage insurance is required.
USDA loans apply to single family homes only.