usda loan guide



USDA Loan Guide

Loan Type: USDA Home Loan

Specific Uses: Rural Development, 100% Financing, New Construction, First Time Home Buyers, Refinance, 0% Down Payment, Debt Consolidation, Veteran Households, Remove Mortgage Insurance, Cash Out.

 

What is a USDA Mortgage?

The United States Department of Agriculture (USDA) set the guidelines for the program. This is also called the USDA RD (Rural Development) Loan. This loan type is used to promote growth in areas that are developing. It is one of the best cost effective mortgage products in today’s Real Estate market. Consider one of these loan types if you are looking to live a rural or suburban area. Many lenders are adopting USDA Home Loans in their portfolio.

 

USDA Home Loan Summary:

The USDA loan is guaranteed by the U.S. government. Guaranteed does not mean that every borrower’s approval is certain. Rather, it means that USDA will reimburse lenders if the borrower defaults on the loan. This allows the interest rates to be lower since part of the risk of default has been eliminated. 100% Financing with 0% Down is the only mortgage product like this on the market besides a VA Home Loan. USDA eligibility is based on a mapping grid. Must be in a geographical area that offers USDA Home Loans.

 

USDA Home Loan Guidelines:

  • DTI: (Debt-to-Income) Ratio must not exceed: 29/41%
  • Max Loan Amount: This depends on the county and its Loan Limits
  • Assets: Two months Bank Statements
  • Income: 2 Years full tax returns required
  • Min Credit Score: 620 (depending on Lender)
    • Applicants without any credit history may also be eligible for USDA Home Loans. Must have:
      • Rental History
      • Utility payment records
      • Insurance Payments
    • Max CLTV: (Combined Loan-to-Value) on an USDA Home Loan is 100%
    • Max LTV: on a Cash Out Refinance is 90%
    • Collections: Any Collection balances over $2,000 must be collected or have made payment arrangements prior to closing.
    • Cash Out Max: There is no maximum cashout amount. Depends on county loan limits.
    • Down Payment: 0% Down Payment required on USDA Home Purchase loans
    • Missed a Payment? Only two 30 Day Mortgage Late Payments allowed in the last 12 months.

 

USDA Home Loan Facts:

  • USDA Loan Interest Rates are lower than Conventional Home Loan rates.
  • USDA Loans do not require Mortgage Insurance.
  • Only offer a 30 Year mortgage option.
  • Seller may pay up to 3% of Buyer’s closing costs on sales price.
  • USDA Loans do cover Manufactured Homes. (Depends on whether Lender will cover)
  • Primary Residences only. No investment properties.
  • USDA cannot be used to finance an income producing farm.
  • Streamlined Refinance options available.
  • Manufactured Homes accepted as long as they are new. (In most cases)
  • Gift Funds allowed for closing cost assistance.
  • Low closing costs.
  • Appraisal required on Purchase and Refinance USDA Home Loans.
  • No Appraisal required on IRRRL (streamlined USDA Refinance)
  • Debt-to-Income Ratio’s on a USDA Home loan are usually higher (better) for borrowers with income qualifying issues.
  • USDA Guarantee Fee: 0.40% – 0.50%
  • Funding Fee = 2.75% of Loan amount (depending on when USDA Loan was obtained)
  • Funding Fee not considered as part of total 100% LTV cap. (Funding Fee can be financed)
  • Minimum FICO (Credit Score) Required = 620. Sometimes lower depending on the Lender.

 

There is still much more information about USDA Home Loans provided by the Veteran Administration. Reach out to your bank or lender for more specifics on what you can qualify for.

 

As we like to say here at HC:   Ask. Learn. Save.

 HC - NEW LOGO Final Complete

Connect with us directly with any questions: consults@homeownersconsult.com


Homeowners Consult - Free Home Consult

Request a Free
Home Consult


Accept terms and conditions




15 Year Mortgage 30 Year Mortgage 80 / 20 Loans 1003 Absentee Ownership Adjustable Rate Adjustable Rate Mortgage Affordable Housing Affordable Refinance Options AMC analysis Annual Percentage Rate Antique Appraisal Appraisal Fee Appraisal Management Company Appraiser APR Architect architecture Area Developer ARM Bait and Switch Balloon Payment Bank Bank Fees Bathroom Reno Bedroom Reno Benefits Best Mortgage Loan Be You Own Boss Bridge Loan Buried Pipelines Business Funding Business Mind Buy Down Buyers Agent Buyers Remorse Career Choice Career Path Cash Out Refinance Clear to Close Closer Closing Costs Closing Disclosure Closing Table Colleyville Commercial Property Company Owned Units Consolidate Debt Consult Consultant Contractor Conventional Conventional Loan Conversion Cost to Refinance County Recording Coverage Creditor Credit Pull Credit Score Credit Scores Dallas Dallas-Fort Worth Area Dallas ISD Dallas Life Dangers of Digging Deal Breakers Debt Debt-to-Income Ratio Debt Consolidation Deferred Interest Derogatory Credit Design Contractor DFW Metroplex Dial Texas811 Digging Permit Disbursement Discount Charges Discount Fee Discount Fees Discount Points DIY Home Projects Down Payment DTI Earthquake Insurance Commercial Insurance Eighty Twenty Mortgage Entrepenuer Equity Equity Position Escrow Escrow Funding Escrow Management Escrow Officer Eviction Rates Fannie Mae FDD FHA FICO Score finance Finance Options Financial Advisor Financial Responsibility Financing First Lien First Mortgage First Time Home Build First Time Home Buyer First Time Homeowner First Time Home Seller Fixed Rate Fixed Rate Mortgage Flat Fee Flexible Payment Option Floating Interest Rate Floating Rate Flood Insurance Fort Worth franchise Franchise Disclosure Document franchisee franchisor Freddie Mac FRM Funding Gas Lines Goals Grapevine Hard Pull HARP HARP Home Loan HARP Home Loan Mortgage HARP Mortgage HARP Refinance HELOC Hidden Closing Costs Historic HOI HOI Declaration Page HOI Policy home Home Affordable Refinance Program Home Build Home Builder Home Building Home Buyer Home Construction Home Consultant Home Contractors Home Coverage Home Decor Project Home Equity Line of Credit Home Finance Home for Sale Home Goals Home Improvement Home Insurance Home Interior Home Interior Design Home Lighting Home Lighting Ideas Home Loan Home Mortgage Homeonwers Consult Homeowner Homeowners Homeowners Consult Homeownership Homeowners Insurance Home Pro Home Professionals Home Projects Home Pros Home Protection Home Purchase Home Remodeler Home Reno Home Reno Budget Home Reno Project Home Renovation Home Renovations Home Sale Home Savings Home Search Home Size Home Title Policy Home Value home ventilation Hosting Housing Expenses Housing Market In-House Financing Income Property initial investment Insurance Insurance Agent Insurance Payment Insurance Quote Interest Interest Paid interest rate Interest Rate Lock Interest Rates Interior Design Techniques Investor Job Responsibilities Judgments Kitchen Reno Know Your Options Lava Insurance Lava Zones Lender Lender Fees Lending Companies Liability Lienholder Liens Line of Credit Listing Agent Loan-to-Value Loan Estimate Loan File Loan Officer Loan Origination Loan to Value Ratio Loan Type Location Lowest Interest Rate Lowest Payment LTV market Market Analysis Market Fluctuation Market Trends Master Franchise Monthly Payment Monthly Payments Monthly Savings Monthly Statement Mortgage Mortgage Application Mortgage Banker Mortgage Bankers Mortgage Brokers Mortgage Closing Mortgage Insurance Mortgage Interest mortgage interest rate Mortgage Interest Rates Mortgage Lender Mortgage Lenders Mortgage Loan Application Mortgage Loan Officer Mortgage Note Mortgage Origination Mortgage Payment Mortgage Qualification Mortgage Refinance Mortgage Statement Mortgage Term Mortgage Terms Moving Multi-Family Residence Natural Lighting Net Tangible Benefit New Construction New Home Build No Closing Cost Loan Old House Open House Origination Origination Fees Out of Pocket Out of Pocket Costs Parent Company Par Rate Payment Increase Payments Payment Savings Pay off Debt Percentage Fee PITI PITIMI PMI Points and Fees Pre- Approval Letter Pre-Payment Penalties Prepayment Penalties Principal Private Mortgage Insurance Promissory Note Property Insurance Property Issues Property Management Property Management Company Qualification Qualified Renter Rate Lock Rate Lock Agreement Rate Lock Period Rate Lock Request real estate Real Estate Agent Real Estate Attorney Real Estate Design Planning Real Estate Developer Real Estate Goals Real Estate Home Renovations Projects Real Estate Investing Real Estate Market Real Estate Professional Real Estate Projects Real Estate Renovation Projects Real Estate Renovations Real Estate Savings Real Estate Staging Real Estate Taxes Real Estate Transaction Realtor Realtor Fees Refinance Refinance Issues Refinance Options Refinancing Refinancing Costs Refinancing Fees Relocation Renovation Budget Renovations Rental Insurance Rental Laws Rental Property Renters Insurance Repayment Ability Residential Rewarding Career Rising Rates Room Addition Room for Growth Royalty Fee Savings SBA School Expenses Second Lien Second Lien Holder Second Mortgage Seller's Market Sewer Lines Shopping Signing Confirmation Small Business Administration Soft Pull Staging Start a Family startup costs Stay within Budget Subordination Subordination Fees Sunlight Lighting Supply and Demand Taxes Tenants Texas811 Time in Process Time to Recoup Title Agent Title Charges Title Company Title Insurance Title Insurance Agent Title Package TriMerge tuition TX Underground Hazards Underwriter Underwriting Underwriting Time USDA USDA Loan VA Vacancy VA Loan Victorian homes vintage Water Pipelines Wind Insurance Window Lighting Zone of Tolerance






About Us | Investors | Toolbox | HC Daily | Writers | Contact Us | Advertise

Copyright 2016 Homeowners Consult | All Rights Reserved | Sitemap











Homeowners Consult, Housing Consultants & Referral Service, Irving, TX