VA Loans Defined
October 3, 2018
FHA Loans Defined
October 12, 2018

USDA Loans Defined

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:

CREDIT SCORE

MINIMUM 620

MAXIMUM LOAN AMOUNT

NO MAXIMUM

100% FINANCING

TERMS

30 YEARS

OWNER OCCUPIED ONLY

INCOME/DEBT RATIO

29% HOUSING / 43% TOTAL DEBT

PROPERTY ELIGIBILITY

TO DETERMINE IF A PROPERTY IS LOCATED IN AN ELIGIBLE RURAL AREA, VISIT:

HTTP://ELIGIBILITY.SC.EGOV.USDA.GOV

INCOME LIMITS

VARY BY STATE AND COUNTY.  FOR INCOME LIMITS BY STATE, VISIT:

HTTPS://WWW.USDALOANAGENCY.COM/AM-I-ELIGIBLE/

SELLER CONTRIBUTIONS

UP TO 6% OF SALES PRICE

  • USDA Funding Fee is 1% of the loan amount, which is financed into the mortgage.
  • Monthly mortgage insurance fee is 0.35% times the total loan amount divided by 12.
  • Do not have to be a first time homebuyer to qualify, but cannot presently own a home.

*Information as of 10/3/2018. All of the above information is subject to change or may have additional requirements.