The United States Department of Agriculture (USDA) home loans are great ways for those from low incomes to high incomes to secure home loans with competitive rates and no down payment requirement. Although this sounds nice, you may be wondering how to check your eligibility for a USDA home loan.
The eligibility requirements for USDA home loans vary depending upon which loan you are considering. Here are some of the most popular loans and their eligibility requirements; however, you can also check your qualification at the USDA website.
Rural Housing Guaranteed Loan
The Rural Housing Guaranteed Loan requires applicants to have an income of 115% of the median household income in the area. These individuals must have decent credit and an ability to make mortgage payments as well as a lack of “adequate housing.”
Rural Housing Direct Loan
The Rural Housing Direct Loan requires applicants to have a low income (50-80% of the area median income) to quality. Furthermore, they, too, must be able to make the payments and lack “adequate housing.” This specific loan can also be used for essential renovations and repairs, which fits in great with the USDA mission of improving rural communities.
Rural Repair and Rehabilitation Loan and Grant
The Rural Repair and Rehabilitation Loan and Grant Program requires applicants to have a very low income, which is defined as 50% or below of the area median income. Those qualifying for the loan or grant must have essential repairs that are necessary to provide a sanitary and safe living environment. Those that qualify can receive a loan of up to $20,000 or a grant of $7,500 or less.
The above are only three of several single-family home opportunities for loans or grants to help with rural development as supported by the USDA. Furthermore, there are a wide variety of other loans and grants offered by the USDA, including those under the following categories:
· Single Family · Multi Family · Business · Corporate · Community Facilities · Electric · Water · Telecommunications · Community and Economic Development
The first step in applying for a USDA home loan or grant is to ensure that you live in an area that is eligible. If you are wondering how to check your eligibility for USDA home loans then visit the USDA eligibility website. After selecting single family housing and accepting the disclaimer, you can obtain eligibility information by inputting the state and zip code. After determining if the area you desire to live (or currently live) is eligible for a USDA loan, then you must ensure that you meet the additional requirements outlined by the loan or grant you desire to obtain.
In the end, those with an income of 115% or below in regards to the area’s median household income could potentially qualify for a USDA home loan or grant. The USDA is determined to provide development opportunities to those living in or moving to rural areas. Many of these home loans can be used not only to purchase a new property, but also to repair or amend an existing home that is deemed unsanitary or unsafe. Find out today if you quality for a USDA loan to take advantage of this government-backed program.