USDA Loan For Rural Homes
USDA loans are a type of home loan offered by the United States Department of Agriculture (USDA). These loans are designed to help low-to-moderate income borrowers in rural areas buy a home with little or no down payment. The program was designed to stimulate growth economically in rural and suburban communities throughout the United States.
Qualifying For USDA Loans
USDA is eligible in approximately 97% of the country’s land. Where are these areas you may wonder? The USDA defines rural as any area with a population under 35,000 and is in rural character, and has a serious lack of mortgage credit for low and moderate income families. These loans are for single family homes that the borrower intends to use as their primary residence.
Here is the link to the USDA site.
Check to see if a property is eligible for a USDA Loan.
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What is the downpayment required for a USDA Loan?
0% down payment required in most cases.
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What credit score is needed for a USDA Loan?
Those with a credit score at or above a 640* will typically have streamlined access. However, those with lower, imperfect and in some cases, no credit history, can still qualify with higher criteria and utilization of non-traditional credit history approvals such as rental and utility history.
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Can I qualify if I already have debt? (Debt to Income Ratio)
While it is preferred to be within the 43%* ratio, those with credit scores over 680* may have higher DTI allowances in some cases. The DTI may also be assessed for those in need on a case by case basis with the lender.
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