There are two factors in determining property eligibility – the type of home and the physical location.
– Primary Residence
– Single Family Homes
– Town homes
– Homes must be in good standard condition
– Income producing homes
(duplex, triplex, etc)
– Rental properties
– Mobile homes
– Fixer-upper homes
The USDA provides a great tool for determining if a property is located within an approved rural area. Visit the USDA website where you can either enter your property address or use the interactive map to browse for approved areas to determine if the property is eligible.
The USDA has established income guidelines for qualifying for a rural housing loan. Income limits are based on the county you live in and the size of your household. This loan program is designed to promote home ownership for households of average means; therefore, income limits are designed around the county’s median income levels.
Quick Note: ALL household income must be used to determine qualification for the loan program, not just those who are applying for the loan. A great mortgage specialist can help you with this calculation. You can also check the income guidelines for your own area.
Lastly, like all home loans, the USDA does have credit requirements. Here are a few things you need to be aware of:
– 620 Minimum Credit Score*
– No Late Payments in the past 12 months
– No open collections or judgments
– 3 open and active trade lines (Recommended)
– No Chapter 7 Bankruptcies or Foreclosures in the past 3 years
Credit has become more and more important in all aspects of our lives. This is very true and apparent in the lending industry. If you would like more information about establishing or maintaining a strong credit profile, please check out my credit resources page.
* Subject to change