WHAT IS AN USDA LOAN?
I know you may not have heard of a USDA loan, and yes, as strange as it sounds, the Department of Agriculture does provide low-interest, no down-payment loans to qualified buyers. They have certain requirements that I explain more in detail below.
With every loan applicants need to have stable and steady dependent income and a credit history that shows the ability and willingness to repay the loan.
Applicants with a credit score of 640 or higher are eligible for the USDA’s guaranteed underwriting system. Applicants with a credit score below 640 may still be eligible and will need manual underwriting to approve the loan.
Just like other mortgage applications, the following will be reviewed:
- Credit score
- Repayment patterns
- Credit usage
- Length of credit history
Applicants without established credit may still qualify but will need to provide credit worthiness from other sources.
Stable verifiable income is a must including that the income is likely to continue.
Generally, lenders look for 2 years of consistent employment and will want 2 years of continuing employment and 2 years of income tax returns and of course want to see the last 30 days of your pay stubs.
Everything provided is examined on a case by case basis and I will explain this all to you when we speak.
This program was designed to assist those in rural areas purchase a residential home. The good news in all of this is that their definition of rural is generous and includes suburbs in larger areas. As a USDA lender I can help you determine eligibility.
Property requirements include:
- The home must be used as the primary residence.
- The site must have direct access to a street, road or driveway.
- The property much have adequate utilities, water and wastewater disposal.
If you believe you may qualify for a USDA loan, let’s talk. This is an excellent program for those who do qualify and I am here to help you make that determination. Give me a call at 813-361-6350 and I will be happy to answer any questions that you may have.