USDA Loan

  • Home
  • USDA Housing Loan Benefits
  • USDA Loan Information
    • Guaranteed USDA Rural Home Loan And USDA Direct Loan
    • USDA Loan Credit Requirements
    • USDA Loan Eligibility
    • USDA Loan Property Eligibility
  • USDA Loan Quote
  • USDA Loan State Information
    • Arizona USDA Loans
    • California USDA Loans
    • Ohio USDA Loans
  • Blog

What are the Hardest USDA Loan Restrictions to Meet?

October 31, 2016 By usdaloan

what-are-the-hardest-usda-loan-restrictions-to-meet

USDA loans are not a widely known product, but they should be because they offer borrowers a multitude of benefits starting with a zero percent down payment! The problem is that there are specific restrictions you must meet in order to qualify. The no down payment and ability to finance the mortgage insurance right into the loan is a great way to afford a USDA loan, but getting into one could be a different story. The hardest restrictions to meet are the income requirements and the property requirements.

What are the USDA Income Requirements?

The income requirements for a USDA loan work quite the opposite of any other loan type. Rather than requiring you to make more money, this loan program rewards you for making less money. This is because the program is geared towards low and middle-of-the-road income families; it is not a program for the wealthy. This is why there are income restrictions. The restrictions are not straight across the board either – there are many different maximum values depending on the area that you live. The maximum amounts are based on the cost of living in the area as well as the average salary for the area. You can find the particulars for the count you live or wish to live in on the USDA website. You simply enter the following information to determine if your income would qualify:

  • The state you live
  • The county you live
  • The amount of your gross monthly income
  • The amount of your co-borrower’s gross monthly income
  • The number of people living in your home
  • The number of children under the age of 18, disabled people, and full-time students that live with you
  • Annual child care expenses
  • Any other income (commission, overtime, bonus, etc._

Talk to a lender to see if you qualify»
The USDA website will then let you know if you qualify for USDA financing based on those qualifications.

A Closer Look

Your income is not the only factor the USDA looks at to qualify you for the loan, though. They provide you with allowances to lower your income to make your chances of getting approved higher. These allowances are provided to parents with children under the age of 18 living with them; parents with full-time students over the age of 18 living with them; people with disabled relatives living with them; and people with elderly people over the age of 62 living with them. Each person that falls into one of the above categories gives you a $480 per month deduction with the exception of any elderly people living with you – they provide you with a $400 deduction.

The Property Location

The other hardest restriction to meet on a USDA loan is the property location. Technically, this loan program is for rural properties. When most people think of rural, they think of farm or way out in the country type living. Fortunately, that is not what the USDA deems rural. If you look on their eligibility map, you will see that there are a large number of areas that fall into the eligibility for this loan type. You can put in an individual address to see right away if a property you are interested in purchasing is eligible or you can look at the general area of where you are looking to see which locations you need to stick to in order to qualify for a USDA loan.

Generally, USDA loans are not hard to qualify for, especially if you are a low or middle-of-the-road income family. If you are having a hard time finding a home in a rural area, enlist the expertise of a realtor that deals with USDA properties so you can find a home that you can use this lucrative financing program on to get the home you desire.

Click Here to get matched with a Lender»

Filed Under: USDA Lending Guidelines Tagged With: income maximum values, income restrictions, USDA Income Requirements, USDA Property Location

Latest News

  • Are there Government Home Loans for Rural Areas?
  • How Many USDA Loans Can One Person Have?
  • How You Can Use USDA Home Loan Eligibility Twice

Search

IMPORTANT MORTGAGE DISCLOSURES:

When inquiring about a mortgage on this site, this is not a mortgage application. Upon the completion of your inquiry, we will work hard to match you with a lender who may assist you with a mortgage application and provide mortgage product eligibility requirements for your individual situation.

Any mortgage product that a lender may offer you will carry fees or costs including closing costs, origination points, and/or refinancing fees. In many instances, fees or costs can amount to several thousand dollars and can be due upon the origination of the mortgage credit product.

When applying for a mortgage credit product, lenders will commonly require you to provide a valid social security number and submit to a credit check . Consumers who do not have the minimum acceptable credit required by the lender are unlikely to be approved for mortgage refinancing.

Minimum credit ratings may vary according to lender and mortgage product. In the event that you do not qualify for a credit rating based on the required minimum credit rating, a lender may or may not introduce you to a credit counseling service or credit improvement company who may or may not be able to assist you with improving your credit for a fee.

Copyright © Mortgage.info is not a government agency or a lender. Not affiliated with HUD, FHA, VA, FNMA or GNMA. We work hard to match you with local lenders for the mortgage you inquire about. This is not an offer to lend and we are not affiliated with your current mortgage servicer.

Contact Us | Terms of Use | Privacy Policy | Media | DMCA Policy | Anti-spam Policy | Unsubscribe

Mortgage.info

NMLS ID #1237615 | AZMB #0928735

8123 South Interport Blvd. Suite A, Englewood, CO 80112

CLICK TO SEE TODAY'S RATES