The USDA mortgage is a home loan program offered by the United States Department of Agriculture (USDA) to promote homeownership in rural areas. It often requires no down payment, has competitive interest rates, and is geared towards low-to-moderate income borrowers.

The Benefits of the USDA Home Loan

1. No down payment required.
2. Low-interest rates.
3. Flexible credit requirements.
4. No private mortgage insurance (PMI).
5. Financing up to 100% of home value.
6. Can include repair & renovation costs.
7. Geared towards rural & suburban areas.
8. Available for primary residences only.

Qualifying for a USDA Home Loan

A USDA home loan, specifically the USDA Rural Development Guaranteed Housing Loan Program, is designed to help eligible low-to-moderate income homebuyers purchase homes in eligible rural areas. Here are the basic qualifications:

1. Location: The property must be located in an eligible rural area as defined by the USDA.
2. Income Limits: There are income limits that vary by region and household size.
3. Credit History: Applicants must demonstrate a dependable credit history.
4. Citizenship: U.S. citizens, U.S. non-citizen nationals, or qualified aliens are eligible.
5. Income Stability: Stable and dependable income is necessary.
6. Debt Ratios: There are specific debt-to-income ratio requirements.
7. Occupancy: The home must be the borrower’s primary residence.

Always check with our licensed USDA professionals for the most up-to-date details and specific eligibility requirements.

The USDA home loan program is designed to help low-to-moderate income individuals and families purchase homes in eligible rural areas. Income limits for USDA loans are set based on the median incomes in the specific county where the property is located, and they can vary from one county to another. These limits are adjusted annually and take into account the number of persons in the household.

There are two main types of USDA loans:

1. USDA Guaranteed Loans: These are the most popular type of USDA loans. The USDA itself doesn’t lend the money; rather, the USDA guarantees the loan so that lenders are protected from potential loss. Income limits for these loans are typically set at 115% of the median income for the county.
2. USDA Direct Loans: With this type, the USDA is the lender. These loans are intended for low-income applicants, and the income limits are typically set between 50-80% of the median income for the county.

Given the variance by county and regular updates to income limits, you should check with our USDA consultants to get the most up-to-date and specific information for your desired area. The USDA’s website typically provides a tool to check the current income limits based on the county and state you select.

Ready to apply for your USDA home loan? Give us a call with all of your USDA questions (888)416-4805.