USDA

  • United States Department of Agriculture

  • 100% Loans.

  • Promotes homeownership in less densely populated areas.

  • Offers competitive interest rates.

  • Reduced mortgage insurance costs.

  • Eligibility is based on location, income limits, and creditworthiness, with a focus on low-to-moderate-income families.

  • Eligible Areas & Income Limits:

Summary

  • Ratios (front Housing, back Total Expense)

    • GUS looks for ratios of 29/41.

    • If the credit score is below 660, you must have a 29% front end ratio or lower.

    • If the credit score is 660+, you can go up to 33.9% front end ratio.

    • A 34% or above front end ratio will never receive an approval.

  • Social Security number required.

  • Credit:

    • Minimum 580+ credit, 620 for manufactured homes.

  • Maximum debt ratios restricts how expensive home you can purchase

  • Primary Residence Only.

  • Non-Occupant Co-Borrowers are NOT allowed.

  • Already Own a Home:

    • It is not the intent of the SFHGLP to assist borrowers in building an investment portfolio. The loan applicant is limited to owning one single family housing unit, whether adequate or inadequate, other than the house associated with the loan request. Applicants may purchase another home if all the criteria below are met:

      • The homeowner’s current dwelling is not financed by a Rural Development guaranteed, direct Section 502 (including cosigned obligations), or 504 loan or active grant;

      • Homeowner is financially qualified to own more than one house;

      • Homeowner will occupy the New Home being financed with the guaranteed loan as their primary residence throughout the term of the loan; and

      • The current home owned no longer adequately meets the applicants’ needs. Examples include, but are not limited to:

        • Relocation due to a new job opportunity.

        • Requires a larger home to provide for a growing family.

        • Obtaining a divorce and the ex-spouse will retain the dwelling.

        • Is a non-occupying co-owner or co-borrower on another mortgage loan and wants to purchase their own dwelling.

  • Appraisal: All utilities must be turned on and operating.

  • Eligible Homes:

    • 1-4 units, PUD's; Townhomes; Row homes; New Construction Multi-Wide Manufactured homes from a USDA approved retailer; VA Approved Condominiums are permitted.

  • Ineligible Properties:

    • Single-Wide Manufactured housing; Existing manufactured homes (NFM does not participate in the pilot program); Working farms, ranches, and orchards; Boarding houses; Second homes; Investment Property; Hero/Pace Liens; Cooperatives; Multi-unit property (2-4 units); Properties located on Native American land.

  • If 1040's have been provided to substantiate income, tax transcripts from the IRS must also be provided to validate tax returns provided.