To qualify for a USDA Loan, home must be in an eligible rural area as defined by USDA
USDA allows very low-income applicants to obtain a loan to full fill their dream of homeownership.
Who can qualify for USDA 502 Direct Loan Program
There are several factors that is considered when determining which borrowers are eligible for single family direct home loans. Few conditions must be met if borrowers is interested in getting a direct loan and must have adjusted income which is at or below the low-income limit for the area where you desire to buy your house and can show that they have the ability and willingness to repay the debt.
Few things to consider:
- Must occupy the house as your primary house
- Must have the capacity to full fill loan obligation
- Must not have any suspended or debarred in federal programs
- Property must be less then 2,000 square feet
- Property value cannot exceed the loan limit for that area
- Property cannot produce income
Loan can be 33 year or 38 years for borrower who don’t qualify for the 33 years
Eligible rural area?
USDA has created an eligibility site where one can enter an address to see if the area or property is eligible area.
Down payment is usually not required.
Cations: Please note these programs are based on funds availability and demand for the area you are Appling for and completeness of the application package. Program can change so please consult your loan officer first.