USDA LOANS

USDA Loan Overview

A USDA Home Loan is a low-interest, government-backed mortgage for eligible rural and suburban areas. It offers 100% financing with no down payment required for qualifying borrowers. 

Eligibility 

• U.S. citizen or legal permanent resident 
• Typically 620+ credit score (lender standards vary; manual underwriting possible with lower scores) 
• DTI ≤ 41% (exceptions case-by-case) 
• Household income ≤ 115% of area median income 
• Home must be a primary residence in a USDA-approved area

Key Requirements 

• No down payment (100% financing) 
• Income, employment, and asset verification required 
• Property must meet HUD minimum standards

Debt-to-Income Ratios

DTI = monthly debts ÷ gross income
Example: $2,300 ÷ $6,000 = 38% DTI 

Income Eligibility

Only available to low- to moderate-income households.
Income must be within 115% of your area’s median (check USDA eligibility site). 

Eligible Properties

• Single-family primary residences in USDA-approved rural/suburban areas 
• No maximum purchase price or acreage limit 
• Must pass appraisal and meet HUD requirements

How to Apply

 Prepare:

• Income & employment docs (W-2s, pay stubs, tax returns) 
• Proof of citizenship 
• Bank/asset statements 
• 2-year residential history
• Full credit history