This page outlines what the USDA home loan guidelines and qualifications are. If you are considering buying a home it’s important to know all your options. I believe the USDA home loan program is one of the best because it really works for most Roseburg Oregon home buyers.
Even if you’re a home seller, it’s equally as important to know the different loan programs available so you’ll have an understanding of what each offer could potentially cost or save you if you accept it.
How do you know if you should keep reading and if USDA financing is right for you?
- Are you a family of up to 4 with an annual income of $74,000 or less?
- Are you a family of 5 or more with an annual income of $97,000 or less?
If you are, and you want to buy a home (and you plan on living in the home), you should keep reading and strongly consider getting qualified for USDA home financing.
USDA Guidelines And Qualifications
So here’s a quick look at the current USDA home loan guidelines and qualifications checklist:
- You can still qualify even if you are not a first time home buyer! This is not a 1st time home buying program.
- No Flood Zones. Make sure the home is not in the flood zone, or obtain a flood elevation certificate. USDA will rejected the home if it’s in ANY flood zone.
- No Manufactured Homes. USDA will not lend on any mobile or manufactured home. The house must be stick built.
- No Livestock Buildings or Barns. A shop is okay, a detached garage is okay, and even a tool shed is okay… but USDA will not lend on any property with an outbuilding that can house livestock, horses, chickens, etc.
- Again, Shops, Garages, and Tool Sheds are okay. This is a recent USDA change. In years past they would not lend on any outbuildings. Now they will.
- Must Be Owner Occupied.
- 100% Financing available.
- Low Mortgage Insurance Premium. You will be expected to pay a low mortgage insurance premium for as long as you have the loan. The premium will diminish over the life of the loan and is usually about 1/3 of what a typical FHA mortgage insurance premium is.
- There is NO RECAPTURE. This is not a farm home loan so there is no recapture when you sell.
- Upfront Funding Fee of 2% of the loan amount.
- Buyers with excessive cash reserves or 20% down or more may be ineligible for USDA.
- Different lenders have different overlays.
- Divorced? If you are a divorced buyer and did not retain the property in the divorce, USDA guidelines state that you must show proof that your ex-spouse has been making the payments for at least 12 months, not you. This qualification was just recently adopted.
If you are interested in buying a Roseburg area home, contact me. You can also search the RMLS instantly for homes for sale now HERE!
Buying a home isn’t as easy as it has been in the past, but it’s not as hard as some might make it sound to be. Home loan programs like USDA make it easier for the average buyer to buy.
Read more about USDA home loans and income guidelines etc. on my blog. Enjoy
Troy Schuyler – Roseburg Homes For Sale – Roseburg Oregon 97471