Qualifying for a USDA home loan could be easier than you think. Currently, over 90% of future homeowners may be already eligible for this incredible mortgage offer due to the property eligibility status. These loans are meant to help individuals in rural areas which covers a broad majority of the United States. These areas are defined as an area with a population of less than 35,000 which can be found in more than half of the US. Metropolitan areas do not typically qualify. You must also have U.S. citizenship or a permanent residency. 

Another qualification for a USDA home loan is based on the income and credit history of the homebuyer. You must be able to show that you have a stable income for at least 12 months. This will be based on your employment, savings, and bank statements. Your debt to income ratio will also be factored in as well. It is more favorably looked at when your DTI is 43% or possibly lower. 

In addition to your location, income, and debt to income ratio, your credit score will be looked at as well. Typically a credit score of 640 or less is preferred by most USDA loan standards. This allows the process to be streamlined. Some exceptions may be made such as circumstances that were possibly out of your control but 640 is definitely more acceptable for this type of mortgage option. If your credit score is above 680, there may be more flexible options when it comes to other qualifying factors such as debt to income ratio.  

If you feel that a USDA loan is the right mortgage choice for you, then call our qualified and experienced loan officers today. Let Firehouse Mortgage get you into the home that you deserve.