In order to provide financing, lenders consider the following:
- Rural & Suburban homebuyers within eligible area
- Middle to low-income borrowers within eligible area
- Borrowers looking to repair or renovate existing home within eligible area
Gather the following documents to ensure a smooth application process:
- Asset Information
- Proof of Recent Income
- Tax Returns & Driver’s License
We help get you approved for the perfect loan. This is what we look for:
- Salaried employment or income for the last 2 years
- Assests that cover 5% of the sales price
- Your debt-to-income ratio
- Your credit score and history
The USDA guarantees mortgages issued by a participating local lender — similar to the VA loans — allowing eligible buyers to get low mortgage interest rates without a down payment. You will, however, need to pay a mortgage insurance premium if you do not put money down. Direct loans issued by the USDA are for low — and very, very low-income applicants. These income thresholds vary by regions, but interest rates may be as low as 1%.
Home improvement loans or grants allow homeowners to repair or upgrade their rural home. These loans or grants can provide nearly $30,000 in assistance to eligible borrowers. Income limits vary by region and household size, so you should consult the USDA map to figure out your local limit.
To be eligible for a USDA Rural loan, you must prove your U.S. citizenship, dependable income (typically for a minimum of two years) and acceptable credit history.