The Rich Bersani Group - Greentree Mortgage Company, LP

USDA Mortgages

The USDA mortgage is a niche loan option offered only by the USDA approved lenders backed and guaranteed by the United States Department of Agriculture. It is a loan product exclusively designed to help people in the rural areas of the US.  


Benefits of USDA Home Mortgage

 

Through the USDA home loan, eligible homeowners can easily borrow 100 percent of a property’s value without any down payment. Besides, the loan terms are also flexible and interest rates are quite competitive.


Other advantages include:


  • There is no pre-payment penalty
  • 30 year loan term with a fixed interest rate
  • USDA mortgage borrowers are eligible to purchase new homes, condos, and refinance existing homes


Eligibility Requirement for the USDA Home Mortgage

 

To apply and qualify for the USDA home mortgage, here are some requirements that you should meet:


  1. You must be a US citizen, legal permanent resident, or a qualified alien
  2. The property must be situated in the rural area as defined by the United States Department of Agriculture and occupied by you
  3. You should not already have a home within a certain area of the rural property you  plan to purchase
  4. You must prove your credit worth by meeting the income limit requirement to show that you can afford loan payments
  5. You must have a FICO /credit score above 660
  6. If you have children 12 years or younger, you must provide proof or documentation of their care cost


Income Requirements for the USDA Home Mortgage

 

The borrower’s income is determined by adding up all the sources of income such as:


  • Basic salary
  • Bonuses
  • Child support
  • Alimony
  • Overtime


Your income is then adjusted by taking into consideration people living with you such as elderly people, disable people and children. The standard income adjustments are as follows:


  • $480 for each child/ handicapped person
  • $480 for a full-time student above 18 years of age
  • $400 for elderly people above 62 years old