USDA LOANS

 

USDA Loans are used primarily to help low income individuals or households to purchase homes in rural areas. The loans are mainly available in less populated areas and offer 100% Financing. This means that you as a borrower wouldn’t be required to make a down payment.

 

Program Features

* Minimum FICO 580 – In some cases down to 550 FICO

* Max LTV 100%, Zero down payment

* Purchase, Streamline

* Loan amounts are determined by qualifying ratios and County maximum income limits

* Seller can pay closing costs and prepaids

* No cash reserves requirements

* Can be used to purchase manufactured home of at least double wide

* Closing costs assistance can be used in conjunction

 

Eligibility Overview

Here is an overview of the eligibility requirements for this loan program. View the Guidelines for the complete eligibility requirements.

 

  • Minimum FICO of 580
  • Primary residence only:
    • 1-unit homes
    • Single family homes, condominium units, PUDs, or singlewide and multiwide manufactured housing

 

  • Home must be located in USDA-approved area
  • Eligibility for these loans is based on income and varies according to the average median income for each area, as well as the number of persons residing in the home
  • Borrowers must earn enough to qualify for the loan amount, not so much that their income exceeds the limits set by the USDA

 

 

USDA Streamline Assist

Program Features

* Available to borrowers when their savings is greater than $50 per month

* Finance up to 100% of the home’s value

* No calculation of debt ratios and in some cases, no appraisal

* Borrower is not required to show employment documentation

* 30 Year fixed rate term option

* Noprepayment Penalty

* Additional Borrowers can be added to the refinance (borrowers cannot be removed)

 

Eligibility Overview

Here is an overview of the eligibility requirements for this loan program. View the Guidelines for the complete eligibility requirements.

 

  • Minimum FICO of 580
  • Prior to applying, borrower must have made 12 consecutive on-time payments
  • Primary residence only
  • 502 Direct borrowers may require a new appraisal to calculate subsidy recapture that may be due, but it will not be used for loan-to-value purposes
  • Properties no longer located in an eligible rural area remain eligible for a refinance transaction
  • The refinance may include the principal loan balance, accrued interest, the upfront guarantee fee, and other eligible loan closing cost