USDA Loan: It’s Becoming Popular
Updated January 2017
It wasn’t all that long ago when few people even know about the USDA loan program and those that did thought it had to be you owned a farm in order to qualify for a USDA loan. But not today – most homeowners who are shopping for a home outside a major city are surprised to learn that many properties qualify for a USDA loan even though they can hardly be considered “rural”.
USDA Loan Highlights
- A USDA loan is backed by the USDA
- Can be used to buy a new home or refinance an existing mortgage
- Many people can qualify – it is “not just for farmers”
Who Can Qualify for a USDA Loan?
USDA loan eligibility is determined by property, so depending on what zip code and county the property is located it may be eligible for a USDA financing. When qualifying for a USDA loan, it is very similar to qualifying for a FHA loan – it is important to have a current income that you can document, a decent credit history, a demonstrated ability to repay the loan. Not all lenders have experience helping people with USDA loans, so it is important that you choose a lender with the experience and underwriting capability available in house for USDA loans.
USDA Loans: Common Questions
Still have questions about USDA loans? Here are some of the most common questions people ask us:
What kind of credit history do I have to have to qualify for a USDA loan?
How do I calculate my income when qualifying for a USDA loan?
