USDA Loans

USDA Loans Are Not Necessarily For What You May Consider Rural Properties

The United States Department of Agriculture (USDA) functions as a guarantor for all USDA loans. Contrary to popular belief, USDA loans are available not just for eligible rural homebuyers, but for homebuyers in suburban areas of large cities as well. In addition, they are also made available to residents of towns where populations do not exceed 25,000.

You may benefit by looking at what USDA loans have to offer if you plan to purchase a home on the outskirts of a big city because you can find eligible areas that are within commuting distances of major metropolitan regions.

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What Are the Benefits of USDA Loans?

  • No down payment requirement.
  • Since these loans are backed by the USDA, they come with competitive interest rates.
  • Low and moderate income applicants may qualify.
  • They are not limited to first time homeowners.
  • You may qualify with a less-than -perfect or nontraditional credit history.
  • Closing costs may be financed through the loan, covered by the seller, or paid through via gifting.
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Do You Qualify?

Income limits tends to vary depending on factors such as the location of the home and the desired loan amount. Other eligibility criteria for a USDA loan include:

  • You’re an American citizen.
  • You have a regular source of income.
  • Your monthly payment, including taxes and insurance, should be 29% or less than your monthly income.
  • Your other monthly debt payments are less than 41% of your income.
  • No account of yours has made it to collections in the last 12 months, although you may qualify if you can prove that the reason for default was beyond your control.
  • If you have a credit score of 640 or higher, you benefit through streamlined processing.
  • If you have a limited credit history or no credit score, you may qualify by using nontraditional references such as utility bill payment and rental histories.
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If you think you may benefit by getting a USDA loan

speak to our experts to get more information. They will start by determining if a USDA loan is right for you and then guide you through the application process.

First Time Homebuyer’s Guide

Considering homeownership but not sure where to begin? The Meadowbrook Financial Mortgage Bankers Corp. guide to home buying will make the process easy all in one packet.

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