What is a USDA Guaranteed Home Loan?
This USDA Loan is the only no money down option available to non-military homebuyers. Through Section 502 Guaranteed Rural Home Loans, buyers have access to low rates, less stringent eligibility requirements, and 100% financing. This is all made possible because the loan is guaranteed by the United States Department of Agriculture even when taking into consideration the USDA Income Limits Being Increased.
Why Was the USDA Guaranteed Loan Created?
The USDA developed the Section 502 Rural Home Loan to entice families to move from metropolitan areas and to build up rural communities. Rural development is a fantastic avenue for home ownership for a single family and multi-family housing.
It is important to note that there are many eligible areas that qualify for the housing program or USDA loan program. Just check the USDA Area Eligibility Map first. It is important to meet the requirements.
Approximately 97% of the United States land mass is eligible for a USDA loan and many families we speak to are surprised that they already live in an eligible area.
Families are even more surprised when they learn about the mortgage rates, interest rates, and closing costs with this USDA Loan rural development program.
So What are Some of the Requirements For this Loan?
USDA Loan Info went ahead and created a clean and easy to understand chart for you.
Here are what some of the requirements for this particular USDA Loan:
1. Your Minimum Credit Score ideally for this loan program sits no lower than 640.
2. The Base Income limit for the USDA program is %115 of Area’s Medium Income.
3. Single Family limit is broken down into the following:
1 to 4 Household = $82,700 or 5-8 Household = $109,150
4. Property Eligibility stands that a home must be structurally sound, functionally adequate, in good repair and located in a rural area. The rural development as it pertains to rural housing is how the USDA rural loan program functions!
5. Occupancy requirements are that the home must be your main abode.
6. Max Loan Limit does not exist in this Loan Program.
Am I Eligible for a USDA Loan? What about the Property Eligibility?
The simple answer is – Yes!
Any individual or family who plans to occupy a home located in an eligible USDA loan area as their primary residence may qualify for the Section 502 Guaranteed Rural Loan. All applicant(s) for the USDA loan must provide sufficient income verification and a credit history that indicates an ability and willingness to meet repayment obligations.