USDA Loan Application Checklist: Determining Eligibility
Want to take advantage of the last true No Money-Down Loan left on the market?
This quick checklist can help you determine your eligibility when filling out your USDA Home Loan Application:
- Where is your dream home located?
USDA Loans are made available in areas located outside the city limits and with a population of 20,000 people or less. Many areas all over this country qualify. Check out our USDA Home Loan Eligibly tool to learn more.
- How’s your credit score?
Worried that a little prior bad credit card debt may hold you back? You may still be in luck. Credit score is not the only evaluation criteria used to approve your USDA Home Loan Application. Other factors, like the ability to pay the monthly mortgage and having reestablished your credit payments in recent history, are used as part of the assessment and approval process. Contact us today to learn how we work to get you approved.
- How much money do you make?
For your USDA loan application to be approved, your annual income cannot exceed the income limits set for the county in which you are purchasing property. For more information on income limits, visit our USDA Loan Eligibility page.
- Do you qualify for a conventional home loan?
The USDA Loan Program was designed to help build the nation’s smaller communities, while simultaneously helping people who do not qualify for conventional home loans. Therefore, if you do qualify for a conventional home loan, you may want to explore other avenues.
- Have you filed bankruptcy in the past?
Even if you have filed for a bankruptcy in the past, your USDA home loan application may still be approved. Common criteria involve Chapter 7 bankruptcies to have been discharged three years or later. Persons having filed a Chapter 13 bankruptcy must have met all court approved payments for at least one year.
- Do you need to finance your closing costs?
Take note that any difference between the agreed upon price and the appraisal costs can be financed. Therefore, you can often finance closing costs along with your USDA loan application.