USDA first time buyer guide
The USDA is way underutilized by borrowers. Most buyers with low to moderate income will qualify for USDA 103% financing. Learn more about the income limitations for your area The rural development home loan program is geographically based. The home you are financing must be in the USDA lending area. Learn more about the lending areas here.
Most USDA lenders require a 620 credit score in order to qualify. The USDA loan works very much like the VA Home Loan Program in that there is no down payment required from the borrower. There is no monthly mortgage insurance premium either. There is an up-front guaranty fee that is financed on top of the base loan amount.
In addition to the credit score borrowers should be able to demonstrate some positive credit history with the most recent 24 months. The gross income should be three times the new mortgage payment and two times total credit report debt plus the new mortgage payment with taxes and insurance.
Some repairs and buyer closing costs can be financed especially where appraisal comes in higher than the purchase price.
To learn more and pre-qualify for this or any other home loan program apply online by using the links to the left.