How To Get A USDA Home Loan

USDA Home Loans are home acquirement options that offer require zero down payment. The program is only available to properties in rural areas that belong to one of the USDA designated areas. So, if you’re planning on experiencing the rural life, then a USDA Home Loan is your fastest and best option.

Firstly, what makes me quality for a USDA home loan?

Eligibility criteria for a USDA Home Loan

The USDA has set eligibility requirements for potential applicants. The requirements were put in place in order to make it more friendly towards the target demography, and to avoid potential exploitations. To avail for the USDA Home Loan, one must meet the following requirements.

The minimum qualifications for USDA Loans are:

1. S. citizenship or legal permanent residence (non-citizen national or qualified alien).
2. Creditworthy, and applicant must be able to prove he/she is such.
3. Must have a stable and dependable income.
4. Must have the willingness to repay the mortgage
5. Adjusted household income is less than or equal to 115% of the area median income.
6. The property to be financed is to be used for primary residence. NO financing would be given for second homes or investment properties.
   

In addition to the qualifications mentioned above, there are still USDA loan credit requirements to watch out for. To demonstrate the credit ability and willingness of the applicant to repay the loan, here are the items to be reviewed by your lender.

1. Credit score
2. Repayment patterns
3. Credit utilization
4. Length of credit history
   

You can still be eligible for the loan program even if you have no established credit. The lender would still require credit verification from other sources such as rent payments, utility payments and insurance payments. Lender policies usually vary on this matter.

Documents You’ll Need to Submit to Get a USDA Home Loan

You’ll need to submit the following (but not all as some items may not be applicable to you) documents to properly apply for the USDA Home Loan. To know the full list of documents you would need to submit, be sure to talk about it with your chosen lender.

• Photocopy of a State issued photo ID card and social security card for each borrower and non-borrowing spouse.
• Records of W2 forms from the past two years.
• If retired:
  • Award letters for social security, pension/retirement income
  • 1099 forms for the last two years for social security, pension/retirement
• Provide divorce decree or child support agreement if paying for or receiving child support.
• Paystubs for the recent and consecutive months for each borrower and non-borrowing spouse.
• Most recent federal income tax returns for personal and business with all pages/schedules
• Quote for homeowner’s insurance complete with agent contact information.
  

Where to find USDA Home Loans Austin near me

In the flourishing city of Austin, USDA home loans have helped a lot of people get their dream homes. Simply search for USDA loans Austin near me online and you’ll be able to directly find a lender that can help you. Once you’ve talked to them and have your questions answered, simply fill their forms and follow through with their instructions.