For our clients that are looking for a home to purchase in a more rural setting we offer USDA loans. USDA loans can be used for either Purchases or Refinancing.
Home must be USDA eligible for purchase. To determine if home is eligible for USDA financing you can click here. USDA has max income caps on total household income that can't be exceeded in order to be eligible for USDA financing. The max income caps can vary by county. To determine what the max income cap per county is you can click here.
- USDA loans require no down payment towards the purchase price of the home.
- USDA allows middle credit scores as low as 600.
- USDA allows borrowers to get financed that have had a bankruptcy that has discharged 2yrs ago or older.
- USDA allows borrowers to get financed that have had either a short sale or foreclosure that is 3 yrs old or older.
- USDA offers 30 yr fixed rate mortgages only.
- USDA charges a very small monthly PMI (Private Mortgage Insurance) on each loan in the borrowers monthly house payment regardless of how much money is put down by the borrower. The monthly PMI charge is considerably lower than that of an FHA loan.
- USDA allows up to a 47% back end Debt to Income Ratio (all debt payments on credit including new house payment divided into gross monthly income).
**If your credit score is lower than required for this program check out our credit rescore program where we may be able to raise your credit score within a few business days.