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USDA Home Loan Eligibility

 

Are there certain eligibility requirements to qualify for USDA Guarantee Home Loan? Of course, borrowers still need to qualify for USDA home mortgage loans even if they fall within the low income bracket. In general, the USDA has two types of eligibility requirements 

  1. Eligibility of the property
  2. The borrower’s credit and financial eligibility

The Eligibility of the Property

A USDA guarantee home loan is for 30 years and can be used to relocate, renovate, build, repair or buy properties as well as prepare sites. According to section 502 of the loan program, properties that USDA home loans can be used for must meet the following requirements:

  • Any homes that are built, renovated or bought must adhere to HCHP thermal and site standards
  • Newly constructed properties must meet the Manufactured Housing Construction and Safety Standards by the HUD

Borrower’s Credit History

USDA loan eligibility

Like most mortgage loans, a USDA mortgage loan is only provided to a borrower who can successfully demonstrate his/her willingness and ability to repay the loan amount in the form of monthly payments. However, your credit history will still be up for analysis. This is to determine whether you will be capable of keeping up with payments when they are due. Generally, a borrower must have a middle FICO score of 640 to qualify. Certain conditions may apply if a borrower has a middle score lower than 640, thus, constitutes a manual underwrite.

Additionally, the income of a borrower must also be moderate according to the area where the property in question is located in Texas. According to the USDA, no more than 29% of a borrower’s income can go towards mortgage liability. Ultimately, income requirement for USDA loan is based upon the number of people in household and area median income. Borrowers must check for income eligibility in any county in Texas to see if they qualify for USDA financing.

by Gerry Nicodemus

 

Why Choose TexasUSDALoans.org

USDA Loan Specialists Available to Help You

Our USDA Loan Specialists are always available to help answer your questions. You can contact a dedicated USDA Loan Specialist through our website or by calling us directly.

A Simplified Process that cuts through all the clutter

From the very beginning, our USDA Loan Specialists will assist you in weighing your options, confirming your eligibility, and obtaining the documents required to get you to the closing table.

USDA Approved Lender

USDA Rural Development requires lenders offering USDA Loans to go through their approval process. Amcap Mortgage Ltd. is a USDA approved lender specializing in USDA Loans in Texas.

 

$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.