February 16th, 2013 3:47 PM by Jill Kohler
You don’t have to be a farmer to get a USDA home loan, however you do need to live in a rural area or a rural part of a suburban area. Income is one of the most important criterias for these loans. The income eligibility is capped at 115% of your median area income. USDA loans require mortgage insurance, but the premium is much lower than an FHA conventional loan. Qualifying income ratios are 29% for housing costs and 41% for total debt. Eligible properties types including existing homes, new construction, modular homes and new manufactured homes. You must be out of bankruptcy for at least 2 years and discharge must be “credit worthy.” You cannot own another home within commuting distance of the home you with to purchase. All loans are 30 year fixed.
CLICK FOR A FREE QUOTE