Rural Development Loans are granted through the United States Department of Agriculture’s USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program. It has low interest rates and no down payments, and you might be surprised at how easy it is to obtain. The USDA guarantees a mortgage granted by a participating local lender, allowing you to enjoy affordable mortgage interest rates.
Rural Development Loan Requirements
The primary requirement for the loan is that the residence be located in one of the USDA’s designated rural or less-populated areas. Many individuals are unaware that a USDA loan can be used to acquire property in practically any part of the country outside of big metropolitan areas. This frequently includes villages, small towns, and suburban districts near major cities, as well as a variety of other places.
Based on your assets, savings, and current income, you must demonstrate that you have a regular income and can make your mortgage payments without difficulty for at least 12 months. When applying for a USDA loan, your mortgage lender will analyze your debt-to-income (DTI) ratio. USDA does have generous income limits depending on the size of the household. Please call for details.
Applicants who do not have a credit score or have a limited credit history can qualify using “nontraditional” credit references such rental and utility payment records. Those with credit scores of 640 or higher have their applications processed more quickly, while those with scores below that must meet more severe underwriting criteria.
Is a USDA Rural Development Loan Right for You?
InterWest Mortgage in Idaho Falls, Idaho is a USDA-approved lender with a competent team and a diverse range of mortgage options. We’re looking forward to putting our lending experience to use for you. Our loan professionals are dedicated to assisting each customer in obtaining the best loan for their unique needs, with the best rates, terms, and fees.