Getting a USDA mortgage or qualifying for one has never been easier. There are a few things to know before trying to qualify for a USDA loan. They are next.
1) The first and most important is where you plan to live or buy a house. There is a property eligibility map on the USDA website. Simply Google and type in the home or location you’re looking for to determine if your area is eligible. Most rural cities or rural locations are eligible for USDA funding. If your city is not, try to see how far you will have to move from where you want to live to determine if USDA is right for you. Sometimes you may only have to move 10-15 minutes from the city limits and stay in the city you want or be a driver 5-10 minutes further from work, but get the peace and quiet of live in the country and have a good size garden. for the little ones to play.
2) The second is how much your combined family earns in annual income. This is vital. Generally, borrowers whose combined income exceeds $100,000 per year in Indiana will not qualify. There is an income calculator to determine if your family size and income qualify or not. Family size is very important. 4 or less usually qualifies for the same income once you get above 5 it allows you to start earning more money. You must add the total family income minus minors. You can also deduct your children’s expenses from your gross income.
3) The third is to find a lender that knows how to make these loans. It typically takes 5-6 weeks to close on a USDA loan. Sometimes it can be done in 4 or less. The reason is that the USDA actually issues a final approval once the lender is cleared to close. Once you have a final authorization issued by your lender, it can take anywhere from 3 to 7-10 business days, depending on how backed you are by USDA.
The benefits of choosing a USDA loan over a traditional or conventional FHA loan is that USDA qualifies for NO down payment. Plus, it only has a 0.35 basis point monthly finance fee, while FHA is 0.85 and Conventional varies based on credit score and down payment. USDA loans are becoming the mortgage choice for borrowers in rural areas or USDA-eligible areas. Find out if you qualify today!