The Basics of USDA Qualification

USDA Home Loans are the new hot product out there in the world of home loan financing. This is a very unique produce that unfortunately not everyone can qualify for as the criteria is a bit on the untraditional side compared to other loan programs, but if you are able to fit into the criteria it’s by far the best loan out there you can get into.

 

The basics for qualifying are pretty much in line with the other loan programs as far as credit score requirements, 620-640; length of employment required 2 year history with not more than 30 day gap between jobs; length of time required after a bankruptcy has been discharged, 2 years. Now the extra requirement is property eligibility. The property must be a single family, stick built, move in ready home; no manufactured homes. The property also must be located in a designated by the USDA rural development territory guidelines which is generally properties not located within city, metropolitan areas or suburbs; more out in country areas with smaller populations. This does vary by county, by state. Each has its own designated areas.

Another qualifying factor that needs to be met is income. USDA does cap maximum income per household which also varies per county, per state, per how many members in the household. When calculating income all household members income must be accounted for, regardless if on the loan or not. The more members in household the higher the limits go.

 

The perk to meeting the requirements of the loan is 100% financing option with the monthly mortgage insurance fee being significantly less than other government programs which helps keep the monthly payment lower. It’s a great option for first time home buyers who do not have a lot of extra money for a down payment, yet gives them the opportunity to be homeowners.

 

 

Duck, Duck, Goose!

Get those ducks in a row and let’s start with this pre-approval.  Call CREFCO today and talk with your very own loan expert!!  Forget the automated call centers and long hold times… we have experts standing by : )

 

You have questions and we have answers.  Don’t wait and wonder, call now!!  All questions get answered and in full detail.  Don’t know where to start, no problem… we walk you through it all… Questions, expectations, qualifications, timelines, application, documentation, credit, pre-approval, payments, terms, rates, realtors, listings, sellers, negotiations, offers, purchase contract, seller paid costs, out of pocket costs, earnest money, appraisal, inspections, engineers, underwriting, turn times, rural development, scheduling, closing, referrals… and the list keeps running.

 

By educating our borrowers we eliminate devastating surprises.  Don’t be fooled, you need an expert and expert you will find here at CREFCO : )  If you are not carful you can really mess this thing up!!  Put a hold on additional credit purchases, job changes, co-signing for others, and even inquiries on your credit for little thing like switching utilities as these can all affect your loan approval.  You are important to us and so we take the time you need and deserve.

 

Call today and let the fun begin : )