Harrison Lending Group in Texas can help you learn the requirements for USDA loans and determine your eligibility.  USDA loans are loans issued by the government, and often issued to those in rural areas, small communities and some areas just outside major metropolitan areas.

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What is a USDA Loan?

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USDA home loans, also known as rural development loans, are loans issued by the US government. To help families who may not quality for conventional loans or have the same lending options as those in larger cities, the US government issues these loans through approved private lenders.

With a USDA loan, the family can borrow up to 100% of the home's appraisal, meaning no down payment is needed. The loan is set for a 30-year fixed rate home loan and requires no mortgage insurance.

A USDA loan is a great option for families in smaller communities trying to find a way to buy a house. 

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Who is eligible for a USDA Loan?

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According to USDA, to be eligible for a USDA loan, you must:

• be a US Citizen, a US Non-Citizen National or have a qualified Alien status

• be at least 18

• not own another house in the local area

• occupy the home as your primary residence

• be unable to get conventional loan that requires a 20% down payment

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Income Guidelines for USDA Home Loans

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There are income guidelines for USDA loans that vary by the area in which you're applying for the loan.

 

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USDA Loan Eligibility

 

The USDA loan is part of a federal program that supports rural development. If you’re buying a home in a rural area, make sure to check with me to determine if you’re eligible for a USDA loan. The USDA loan requires ZERO down payments – which is almost unheard of these days.

Other benefits to the USDA loan include a 30-year fixed interest rate – meaning the rate will not adjust over its lifespan. Also, no mortgage insurance is required on a USDA loan.

If you’re eligible for a USDA loan, this is a great route to financing. Below are some eligibility requirements:

• Rural area
  You must purchase property within an eligible area. To determine if you’re eligible, check out the interactive map on the USDA’s website or call our office 956-630-7346.

• Income requirements
  There is an income limit that is set for your county – you must not exceed that in order to be eligible. Some of the factors that go into determining include:

  • Your county

  • The total number of people in the household

  • The number of residents under age 18 (or disabled or full-time students)

  • Your age

  • The number of disabled persons in the home

  • Your monthly expenses versus your income

• Credit history
  This works differently than a credit score – your credit history will be reviewed to determine if you appear to be someone able to repay the debt and not default on the loan.