USDA or Rural Housing Loans
USDA home loans sometimes call Rural Housing Loan, are loans made for rural areas like the name suggests. The government backs theses loans and makes it so you don’t have to have a down payment – that means 100% financing. Rural areas are defined by the census and has to meet population requirements – less than 25,000 people in a city. There is an income limit that changes by county. Contact a lender for info on if you qualify for a rural housing loan.
Why do a Rural Housing Loan?
- No down payment required a.k.a 100% financing
- Seller can pay your closing costs
- You can receive gifts for any down payment you want to do
Who Qualifies for a Rural Housing Loan?
- Must have a 640 or better credit score
- Must have a debt-to-income ratio of 41% or less. How to calculate your debt-to-income ratio.
- Fit in the rural housing loan limits