USDA (US Department of Agriculture) Loan
A USDA (United States Department of Agriculture) loan is a unique mortgage option designed to assist individuals living in rural and suburban areas in acquiring affordable housing.
These loans are backed by the USDA and offer several benefits to eligible borrowers. One of the standout features is the opportunity to secure a home loan with little to no down payment, making homeownership more attainable for those with limited upfront funds. Additionally, USDA loans often come with lower interest rates and more lenient credit requirements, allowing individuals with varying financial backgrounds to qualify.
With a focus on supporting rural communities, USDA loans contribute to strengthening local economies and promoting homeownership opportunities in areas that might otherwise face challenges.
At Relentless Mortgage Group, we are dedicated to embracing a “Resilient” Approach to ensure every client finds the best loan options.
Requirements
Prospective homebuyers must satisfy specific eligibility criteria outlined by the USDA to be evaluated for a USDA construction loan or to meet the prerequisites for acquiring a USDA loan aimed at home purchase. As an illustration, one of the criteria entails your residence within the home, which should serve as your primary dwelling. Presented here is a summary of the remaining prerequisites.
Residency:
- Must be a U.S. resident, noncitizen national, or permanent resident alien.
Location:
- Homes financed by USDA loans must be in eligible rural areas.
- Check eligibility using the USDA’s interactive loan eligibility map.
- Select “Single Family Housing Guaranteed” and enter the property address.
Income:
- Adjusted gross income should not exceed 115% of the median income in the area.
- Check income eligibility on the USDA’s eligibility site under “Income Eligibility.”
- Demonstrate stable income to make mortgage payments for at least 12 months.
- Debt-to-income (DTI) ratio should generally be 43% or lower.
- Calculate DTI by dividing monthly debts by gross monthly income.
- Include rent, student/auto loan payments, and credit card payments in monthly expenses.
Credit Score:
- Most lenders require a credit score of 640 or higher.
- Lower scores may still qualify. Contact us for more information.
how can we help you?
At Relentless Mortgage we promise to provide complete transparency backed by “5 Star Service” from start to finish.
How do I say this! Ever feel that someone genuinely cares about your clients and your needs! Well with Joshua and his awesome Relentless team you feel that you are getting that top notch 5 star service! His team is clear in communication and is always ready to go the extra mile for their clients needs! We highly recommend anybody that ever has lending question to reach out to them! They will go the extra mile for you and your family!!!
