USDA Loan Requirements | First-Time Home Buyers Guide 2022
USDA Loan Requirements | First-Time Home Buyers Guide 2022
Abstract
USDA loan requirements overview: Location: Must live in an eligible rural areaCredit score: Usually 640 or higherIncome limits: 115% of the area median incomeEmployment: Steady, two-year work historyDebt-to-income ratio: Usually 41% or lessProperty: Single-family primary residenceLoan-to-value: Up to 100% Mortgage insurance: Required on all USDA loansOther guidelines: U.S. resident, clean credit history Before you dive in, explore these USDA loan requirements to learn whether you might be eligible. Per the USDA, these include: Locations with a population of 10,000 or less in areas that are "Rural in character" or "In open country"Locations with a population of 20,000 or less not situated in a Metropolitan Statistical Area To find a property eligible for a USDA loan, you can visit the USDA's property eligibility site. The USDA loan, like most other home loans, generally requires a two-year work history for applicants. USDA mortgage insurance Unlike conventional loans, USDA loans don't charge private mortgage insurance. Does USDA have loan limits? The USDA loan program does not impose loan limits. Why would a USDA loan get denied? There are several reasons why a USDA loan might get rejected. How USDA loans work A USDA loan is a government-backed mortgage that helps low-to-moderate-income buyers purchase homes in rural areas around the country.
