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New Caney USDA Guaranteed Home Loan Program

Do you imagine yourself living away from the hustle and bustle of the metropolis?

Do you find the suburbs a more conducive place to dwell in?

Are you interested in settling down in the quieter and more peaceful areas of Texas?

With our New Caney Texas USDA Loan, you can do just that!

The USDA Loan

Some people have the misconception that USDA Loans are “farm loans” used to purchase properties that are located in rural areas. Nowadays, however, that is not the case as most parts of the country outside the scope of metropolitan regions are part of the USDA eligible area map, New Caney, Texas included.

The USDA Guaranteed Loan is created for people with modest to low incomes who wish to either build, buy, or renovate a property. That said, it has relatively lower standards of qualification than most loans in the market. If your credit score and financial circumstances are two of the major factors that keep you from becoming a homeowner, our USDA guaranteed loan could be the ideal option for you!

usda guaranteed home loans in texas

Qualification Requirements

To qualify for the USDA home loan, you must be a citizen or a resident of the United States, eligible for federal programs. You must also meet specific income requirements that may vary according to the state and locality that you belong to. These guidelines also differ according to the individual’s level of earnings.

As with most mortgage loans, you will be required to submit documentation that will help establish your ability to make the mortgage repayments on time.

  • Income

Families and individuals who wish to avail of the USDA loan must present proof of stable employment, with a gross income not exceeding 115% of the AMI (Area Median Income), adjusted to the size of the household. To confirm whether or not you qualify for a USDA loan in New Caney, you can check for the income eligibility in Montgomery County Texas.

  • Credit Score

Guaranteed loans also subject the borrower to credit standards set by both the USDA and the lender. Because this loan aims to provide housing for families with marginal means, a stellar credit rating is not necessary. However, you must be able to demonstrate a satisfactory credit history with a FICO score of 640 or higher to get approved.

  • Debt-to-income Ratio

Your debt-to-income ratio must not exceed 41% of your monthly income, before taxes. Also, no more than 29% of your gross income should be used to cover your mortgage responsibilities.

  • Property Requirements

The property should adhere to the parameters imposed by the USDA, in accordance to HCHP and/or HUD standards. Most importantly, the home should be used as the primary dwelling residence.

Benefits of the USDA Guaranteed Home Loan Program

The less stringent eligibility standards of USDA’s guaranteed home loan already make it a very viable option for people who may fail to obtain home mortgages through the traditional means. It doesn’t stop there, though. What makes it even more appealing is that you don’t have to make any down payments or pay mortgage insurance for the loan.

If you don’t have enough funds to cover your closing costs and prepaid items (taxes and insurance reserves), the seller can contribute towards those fees. You can avail of up to 100% financing and make use of gift funds and grants to cover closing costs and prepaid items should the seller’s concessions not be available. Sounds like an excellent deal, doesn’t it?

Pre-qualifying for the Loan

If you are hesitant of your chances of getting granted a USDA loan, you can ask for the assistance of our Home Loan Specialists. With their expertise, they can evaluate whether or not you meet the requirements of the credit and give you a clearer picture of what you can afford. This awareness of the limitations of your finances will be a valuable guide in searching for homes that are within your budget and the conditions arranged by the USDA.

Currently, the USDA guaranteed home loan only offers 15-year and 30-year fixed rate mortgages. If you want to pre-qualify or know more about the program, don’t hesitate to give us a call or send us a message!

Our years of experience as the top mortgage lender in Texas have profited us with invaluable insight into the world of home loans.

We look forward to using that expertise to better serve you.

by nico2me

USDA Loan Facts

texas usda loans

$0 Down Payment

Zero Down Payment

A USDA Loan allows the borrower to finance 100% of the home's value and purchase with $0 down. Other loan programs require 5-20% down.

Low Fixed Rates

Low Fixed Interest Rates

You get a 30 year, low interest fixed rate mortgage with zero early prepayment penalty.

Easier to Qualify

USDA Loans are Easier to Qualify

Qualifying requirements for a USDA Home Loans are similar to an FHA loan and requires no Mortgage Insurance.

USDA loans help make home ownership possible for a wider range of people.