YOUR DREAM HOME IN OUTLYING TEXAS NEIGHBORHOODS COULD BE YOURS.
Homes in many areas can qualify.
Great for median income families.
Farm use going non-traditional
First of all, your home must be in a designated USDA rural area. While this does pertain to farmland, and open rural country, these are not the only areas that may qualify. In case of a home loan, a USDA designated rural area is an area with a population of less than 10,000 residents, sometime as much as 25,000 residents, depending on the state. You will be pleasantly surprised at the areas that qualify right outside of major city limits.
For guaranteed USDA home loans, your annual household income must not exceed 115% of the annual median income for that area. This means if your total household income is above the average median income for that area, you may not be able to qualify. However, there are special deductions in place, such as childcare expenses, caring for elderly family members, or children in college, that can help to reduce your overall annual income.
Farming related businesses are considered rural if they are located in a municipality with a population of under 50,000 residents. One example would be a chef that grows their own organic produce for use in their restaurant. Another family sells eggs and goat milk products locally and at the farmer's market. This allows one parent to stay home with the kids while the other drives to their corporate job, while only adding 15 minutes to their commute.
USDA loans are mortgage loans which are guaranteed by the U.S. Department of Agriculture. Because of this guarantee, USDA mortgage rates are typically lower than the rates for FHA loans, VA loans, and conventional mortgages via Fannie Mae and Freddie Mac. In addition, the USDA loan program offers reduced mortgage insurance premiums (MIP) to its borrowers.
Because USDA home loans are designed to assist moderate to low income buyers, there are a few financial requirements that must be met in order to qualify for a USDA loan. The first thing the USDA will look at is your annual and gross monthly income. In order to qualify, you monthly housing costs must meet a specified percentage of your gross monthly income, typically up to 29% of your gross monthly income may be used towards your new home payment. You must also have a credit score of 620 or higher, with no outstanding bankruptcies or foreclosures in the past two to three years.
For guaranteed USDA home loans, your annual household income must not exceed 115% of the annual median income for that area. This means if your total household income is above the average median income for that area, you may not be able to qualify. However, there are special deductions in place, such as childcare expenses, caring for elderly family members, or children in college, that can help to reduce your overall annual income. And lastly, the borrower’s total housing and other consumer credit payments should account for no more than 41% of the total borrower’s income.
USDA home loans offer excellent opportunities for families or individuals to purchase a home. Home buyers can even use the loan to help purchase a manufactured home or a modular home. The USDA home loan program offers tons of distinct advantages that you won’t find in an FHA loan or traditional mortgage program. A few of these advantages include low monthly mortgage insurance, 100% financing, no asset or reserve requirement, and absolutely no money down. That’s right, the USDA home loan program is one of the only remaining mortgage programs in the country that require absolutely no down payment for the purchase of a home. Better yet, the USDA home loan program allows for closing costs to be either paid by the seller in full, or permitted to be accumulated or “rolled into” the total amount of the loan. This allows you to need very little money upfront to buy your home
Talk to us to find out if you qualify, and if the area you're interested in is in a designated USDA area. Deal with us - mortgage lenders, not a company that gathers your information and sells it to a third party. We will never share your information, can assist you throughout the buying process, and are happy to answer your questions.
Call HomePro Mortgage today 281-248-2100 and we can help you with a USDA loan, or help you get into the best type of loan for your situation.
Address: 16365 Park Ten Dr. Suite 110, Houston, TX 77084
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