Nationwide Mortgage & Realty, LLC
Tel: 844-953-0100 Email: info@nationwidemtg.net
Friday, March 24, 2023

Nationwide Mortgage & Realty, LLC

Fast Quote
  • Home
  • About Us
    • Career Opportunities
    • Contact Us
    • Meet the Team
  • Purchase
    • Conventional Mortgage
    • Condotel & Non-Warrantable
    • FHA Loan
    • FHA 203k
    • Fix & Flip
    • Investment
    • Jumbo Loans
    • New Construction
    • Non-QM Loans
    • USDA Loans
    • VA Purchase Loan
  • Refinance
    • Cash Out & Debt Consolidation
    • Conventional Refinance
    • Condotel & Non-Warrantable
    • FHA 203k
    • FHA Streamline Refinance
    • Investment
    • Non-QM Loans
    • Reverse Mortgage
    • VA IRRRL (Streamline)
  • Loan Process
    • Application Checklist
    • Credit Repair
    • Home Buying Do’s and Don’ts
    • Interest Rates
    • Mortgage Calculator
  • Mortgage Blogs
  • Request Information
    • Apply Now
No Result
View All Result
Contact Info | Request Info
Home Purchase

USDA Home Loan | USDA Property Eligibility and USDA Income Limits

byNicholas Auriemma, NMLS# 1455001
4 years ago
inPurchase, USDA Loan
USDA Home Loan | USDA Property Eligibility and USDA Income Limits

USDA Home Loan | USDA Property Eligibility and USDA Income Limits

Looking for USDA property eligibility requirements and USDA income limits? USDA home loans require household income guidelines and the home must be located in an eligible rural area defined by the USDA. The USDA home loan program is for moderate and low income applicants to obtain financing for eligible rural homes that are safe and sanitary helping with a borrower’s ability to repay.

USDA Eligibility – 100% Financing

USDA loans allow financing of up to 100%, with no down payment required, and are determined by a borrower’s ability to repay based on income, credit, and assets. Some mortgage companies may have tougher USDA guidelines than others due to overlays.

USDA Property Eligibility

An eligible area is defined by being a rural area that is an open country, place, village, city part of or associated with an urban area.

  • A lot of the areas in the United States are eligible for a USDA loan and it not hard to look up if the area is eligible.
  • Borrowers are never allowed to borrower more than the area’s loan limit plus acceptable certain costs that can be financed.
  • Borrowers can use the USDA property eligibility program link in order to determine if the property is located in eligible rural area.
  • The USDA property eligibility tool is as easy as entering in an address and checking to see if the address is located or not located in an eligible area.

A Mortgage Loan Originator or realtor should be familiar with this tool and can help assist with determining if the property is an eligible rural area for a USDA home loan.

USDA Income Limits

The single family housing program link for USDA home loans will determine if the income eligibility for an applicant and household is eligible for a USDA home loan. When using the USDA income eligibility tool, the following questions will be asked:

  • What state is the property located in.
  • What county is the property located in.
  • May ask what metropolitan area the property is located in.
  • Number of people in a household.
  • Number of residents under the age of 18 year old that are disabled or full time students.
  • Are the loan applicants or co-borrower 62 years or older.
  • Are there any disabled persons living in the household.
  • The tool will go on to ask about child care expenses, medical expenses, disability expenses, and income.
  • After all these questions are answered, the USDA income eligibility tool will determine if an applicant is eligible or ineligible.

The USDA income tool does not mean that a borrower is guaranteed a USDA loan based on USDA income. The income still has to be looked over by a Loan Originator, which a pre-approval letter can be issued to shop for a home. Once a sales contract has been executed by a realtor, the Loan Originator will submit the loan to underwriting and it has to be cleared by the underwriter.

Borrower Qualifications for USDA Home Loans

  • Minimum credit score of 550 and max debt to income ratios per the Guaranteed Underwriting System (GUS).
    • 550-580 credit score come with limitations.
  • GUS is an Automated Underwriting System (AUS) that is used to receive findings to determine a borrower’s eligibility.
  • The GUS underwriting recommendations are accept, refer, refer with caution, or ineligible.

These are determined by credit, capacity, and collateral.

USDA Grants Now Available

The USDA grant is a grant that is 3% of the first mortgage loan amount, which was designed to increase home ownership opportunities for low to moderate income individuals and families. No repayment required on the USDA grant.

Why would a borrower need a 3% grant if USDA loans are 100% financing?

  • Some borrower’s may not be eligible for 100% financing or have enough for closing costs.
  • The USDA home loan grant can be used for the down payment and/or closing costs.

What is the borrower’s eligibility for a USDA home loan grant?

  • Minimum FICO of 620.
  • If a borrower has adequate funds and does not use the grant, they can have a lower FICO score.
  • Occupy as a primary residences only.
  • Non-occupant co-borrowers or cosigners are not allowed.
  • 12 month housing history is required for the grant regardless of what the GUS finding are.
  • One borrower must complete a home buyer education course.
    • An example would be MGIC Homebuyer Education or similar course.

Bankruptcy and Foreclosure for a USDA Home Loan

  • A chapter 7 bankruptcy must be more than 3 years out from the discharge date.
  • A chapter 13 is eligible if there is 12 months satisfactory pay history and court permission to enter into a USDA home loan transaction, which requires extenuating circumstances.
    • If there are no extenuating circumstances, than the chapter 13 bankruptcy must be discharged for 12 months.
  • A foreclosure and short sale must be more than 3 years out from the date of the trustee’s deed.
ShareTweetShare
Previous Post

Multifamily Mortgage Loan Requirements | Multifamily Loans

Next Post

Obtain a Certificate of Eligibility for a VA Loan with DD 214 | Lost DD 214

Nicholas Auriemma, NMLS# 1455001

Nicholas Auriemma, NMLS# 1455001

Nicholas Auriemma is a Loan Originator at Nationwide Mortgage & Realty, LLC, providing information on mortgages that can often be confusing even to real estate and mortgage professionals. Borrowers can be discouraged because mortgage professionals can be mistaken due to guidelines always changing, the extent of guidelines, their company having an overlay (stricter guideline), or other lenders not offering a loan program. Call or text Nick anytime at 630-779-8430 or email at nick@nationwidemtg.net.

Related Posts

3 Month Bank Statement Mortgage for Self-Employed Borrowers

3 Month Bank Statement Mortgage for Self-Employed Borrowers

March 22, 2022
Is there Still a No Doc Mortgage in 2022

Is there Still a No Doc Mortgage in 2022?

March 17, 2022

Categories

Get Pre-Approved

Start by applying to get pre-approved today.

Recent Posts

No Income Investment DSCR Cash Out Refinance

15 to 30 Year VA Cash Out Loan Up To 100% LTV

Cash Out Condotel Refinance Loan, Rate & Term, & Purchase

3 Month Bank Statement Mortgage for Self-Employed Borrowers

Is there Still a No Doc Mortgage in 2022?

Low Down Payment Jumbo Loans with No Mortgage Insurance

Request Information | Apply Now

Corporate Address:
1 TransAm Plaza Drive Suite 300
Oakbrook Terrace, IL 60181
Phone: (844) 953-0100
Fax: (630) 953-0101
Email: Info@nationwidemtg.net

Copyright 2021 © Nationwide Mortgage & Realty, LLC
Company NMLS Unique Identifier #276777.
For licensing information, go to:
www.nmlsconsumeraccess.org.
Privacy Policy | Terms of Use

Equal Housing Lender

Restrictions may apply. All loans are subject to credit, underwriting and property approval guidelines. Nationwide Mortgage & Realty, LLC is not acting on behalf of or at the direction of HUD/FHA or any government agency. CO: Check license status of your mortgage loan originator at www.dora.state.co.us/real-estate/index.htm. Also licensed in: CA, FL, IN, TN, VA, WI and TX: NMLS ID 276777. Illinois Residential Mortgage License | MB. 6760210. WA: Consumer Loan License MB-276777. GA: Georgia Residential Mortgage Licensee 60857

  • Home
  • Request Information
    • Apply Now
  • About Us
    • Career Opportunities
    • Contact Us
    • Meet the Team
  • Purchase
    • Conventional Loan
    • Condotel & Non-Warrantable
    • FHA Loan
    • FHA 203k
    • Fix & Flip
    • Investment
    • Jumbo & High Balance
    • New Construction
    • Non-QM Loans
    • USDA Loan
    • VA Purchase Loan
  • Refinance
    • Cash Out & Debt Consolidation
    • Conventional Refinance
    • Condotel & Non-Warrantable
    • FHA 203k
    • FHA Streamline Refinance
    • Investment
    • Non-QM Loans
    • Reverse Mortgage
    • VA IRRRL
  • Loan Process
    • Application Checklist
    • Credit Report
    • Home Buying Do’s and Don’ts
    • Interest Rates
    • Mortgage Calculator
  • Mortgage Blogs
No Result
View All Result

Request Information | Apply Now
Phone
: (844) 953-0100
Email:
info@nationwidemtg.net
Nationwide Mortgage & Realty, LLC
​1 TransAm Plaza Drive Suite 300
​Oakbrook Terrace, IL 60181
NMLS # 276777
Privacy Policy

Call Now Button