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Loan Officers
Jennifer Peil
NMLS: 1147403
Jennifer Peil

USDA Rural Housing Loans

A USDA Loan Might Be Just What You're
Looking For - Find Out Here

rural housing loans

USDA Loans are available for financing homes located in qualified rural areas. The definition of a rural area is fairly broad, so you might qualify even if you don’t think you’re in a rural area. The financing is guaranteed by the USDA – the United States Department of Agriculture. With the backing of the USDA, the loans have less risk to the lender so there is more flexibility with the qualification process. By using this rural housing loan package, families with modest incomes might qualify for home loans even without the need to put any money down.

Eligibility for USDA Loans

• You must have a dependable income.
• You must be a US citizen or a qualified alien.
• You must have a yearly income that is not more than the “moderate income” maximum set
   for the area where the home is located.
• You must have a qualifying credit history. This includes demonstrating that you are willing to
   meet financial obligations when they are due. 
• You must be able to demonstrate that you are able to repay the loan, based on this formula:
   PITI (Principle, Interest, Taxes, and Insurance) divided by gross monthly income must be 29%
   or less. Your overall debt divided by your monthly income should be 41% or less.

Features of the USDA Loan Program

• Loans can be for up to 102% of the cost of the house. Certain restrictions apply.
• Loans are 30 year fixed and the interest rate is the going market rate.
• Loans can include closing costs if appraisal is higher than the selling price.
• The seller may be allowed to help pay for the borrower’s closing costs.
• The borrower must occupy the house. It cannot be rented out.

USDA Loans are a great way to become a homeowner when you might not otherwise qualify for a mortgage. Find out if you might be a candidate for this loan.

To find out more about USDA Loans, call Mortgage Options today: (803) 732-5787 or Toll Free at (866) 456-5511.