Low Rates with No Down Payment

One of the most powerful mortgage programs that is available for the low and middle income group in the country is USDA Rural Development Single Family Housing Guaranteed Loan Program or simply known as the USDA home loan. This program comes with a lot of benefits that include:

  • USDA Loan Guidelines 2015No down payment require – When a borrower qualifies for a USDA loan then he gets the flexibility to pay nothing for a down payment out of pocket
  • Flexible credit guidelines – Even applicants with spotty or bad credit can qualify for a home loan
  • Competitive 30 year fixed rate
  • The program has no fixed purchase price limit, the lender decides on the maximum loan amount based on the ability of the borrower to repay

Mortgage Insurance Requirements & Income Limits

The insurance and mortgage requirements of USDA loan are:

Credit requirements

  • On time payments in the last 12 months
  • Middle FICO credit score of 620 or above
  • All chapter 13 bankruptcy payments being paid regularly for the last 12 months
  • A period of 3 years should have passed since a bankruptcy or foreclosure
  • No outstanding judgements in the last year

Income requirements

  • Applicant must have a two year employment history
  • 29% top ratio which means that the new housing payment with PITI may not go over 31% combined with the monthly income of the applicant
  • 41% Bottom ratio which means that the monthly total debt load as well as new housing payment of the applicant may not exceed 41%
  • The adjustable income of the borrower should be lower than the maximum allowed income by USDA RD
  • The borrower must meet the USDA debt-to-income requirements of 29/41 using documented income

Apply for Your USDA Loan Today

Speak with one of our USDA Loan experts today at 877-342-7449 and apply for USDA loan with the best expert advice in the field.