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  • USDA Home Loans

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    • A USDA home loan is a 100% financing mortgage for low to moderate income borrowers in eligible rural and suburban areas.  It is a part of the Rural Development program.  It is designed to "improve the economy and quality of life in rural America".  Like FHA and Va backed loans, these loans are backed by the USDA.  This allows for low-interest rates - even without a down-payment.

      For the most part, with these loans, the requirements are stricter than some other loan programs.  Your mortgage payment must be 29% or less of your monthly income.  Your debt-to-income ratio can be no more than 46% of your income, and you typically need a dependable income for 24 months.  With a credit score of 680 or higher, a higher DTI could be considered.  If the borrower has a credit score of 640 or higher, the loan processing is streamlined.  More stringent practices will be used for those with lower credit scores.  There is also the possibility to qualify with a non-traditional credit history - such as rental or payment histories.