A USDA Home Loan from the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture. Applicants for home loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.
Additionally, the property must be located within the USDA RD Home Loan “footprint.” USDA Loans offer 100% financing to qualified buyers, and allow for all closing costs to be either paid for by the seller or financed into the loan. USDA loan guidelines are currently as follows:
MAXIMUM LOAN AMOUNT
OWNER OCCUPIED ONLY
29% HOUSING / 43% TOTAL DEBT
TO DETERMINE IF A PROPERTY IS LOCATED IN AN ELIGIBLE RURAL AREA, VISIT:
VARY BY STATE AND COUNTY. FOR INCOME LIMITS BY STATE, VISIT:
UP TO 6% OF SALES PRICE
*Information as of 10/3/2018. All of the above information is subject to change or may have additional requirements.