What are the Basic Requirements for obtaining a USDA loan?

A USDA mortgage loan is one of the very best loan products currently on the mortgage market. A USDA loan will offer a qualified home buyer 100% financing with no down payment, low financing rates, and low monthly mortgage insurance. Requirements for a USDA loan are fairly straight forward. In a perfect world USDA wants to see a middle credit score of 640, however will go down to scores as low as 600 so long as you can verify and document a clean 12 months rental history. Generally speaking an applicant should have no late payments or collections in the most recent 12 months. Your debt ratio which looks at how much money you make compared to how much money you spend needs to be in line with USDA requirements, however there is some flexibility in these ratios with higher fico scores. USDA also has income limits, meaning that you can actually earn too much money to qualify for the loan program. This income limit works on a sliding scale in accordance to how many people live in household. USDA loans are intended for applicants who want to purchase is a Rural and have low to moderate income levels.

If you would like more information concerning USDA loans or would like to apply for one, please contact our office or complete an application online.

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