USDA Loans: The Low-Income Home buying Option You Didn’t Know About

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USDA loans are for rural homebuyers and provide an option for zero-down-payment mortgages.

If you’re looking for a way to break into the housing market but don’t think you can afford it, this may be the perfect option for you. In this blog post, we’ll discuss what USDA loans are, who is eligible for them, and how to apply. You may be surprised at just how affordable home ownership can be!


USDA loans are backed by the United States Department of Agriculture. They are available to low- and moderate-income earners, as well as those living in rural areas. Lenders who operate under the USDA program typically require a credit score of 640. If you do not have this score or higher, you won’t be completely eliminated from being eligible, you may just have different requirements to receive your loan. This means that even if your credit is less than perfect, you may still be eligible for this type of financing. If your score is above 680, the USDA may consider a higher income to debt ratio.


To be eligible for a USDA loan, your household income must fall at or below the median income for your area. You can check the USDA’s website to see what the median income is in your county. In addition, you must be a U.S. Citizen or permanent resident alien, and you must have a steady income and employment history. The Single Family Housing Guarantee Program requires that each applicant personally occupy the dwelling as their primary residence. 


The USDA states “This program helps lenders work with low- and moderate-income households living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.”


If you think you might be eligible for a USDA loan, the next step is to contact a participating lender. USDA-approved lenders can help you navigate the application process and will be able to tell you what documents you’ll need to provide. Once you’ve gathered all of the necessary documentation, you’ll submit it to the USDA along with your loan application.


The USDA will then review your application and make a decision. If you are approved, you’ll be able to start shopping for your new home! Visit the USDA website to determine eligibility and get started today!

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