Guidelines

USDA Guidelines for Residential Mortgage Eligibility

You must be a United States citizen, a qualified alien, or must be admitted legally to the United States for permanent residence.
Your annual income must be less than the income limit established by the USDA. Income limits are set by the USDA for each county in the United States and your adjusted income cannot exceed the limit where the property is located. All adults that reside in your household that have an income must be included in calculating the total income of the household. In order to meet the USDA income qualification requirements, there are a few adjustments that may need to be made when arriving at the gross household income figure. An example of one of these adjustments is expenses for child care.
You do not have to have perfect credit but you do need average credit. The USDA lender handling the underwriting and funding of your home loan may require additional conditions beyond the minimal USDA loan requirements.

The total mortgage payment including property taxes and insurance should not exceed 29% of your gross monthly income.
All of your monthly repayments on outstanding debts must be less than 41% of your gross monthly income.
Your total adjusted household income cannot be more than the maximum income limit in the county the property in located as determined by USDA.
You must not currently own an adequate home.
You must have the legal capacity to incur the loan obligation.
You have to be the owner occupant. You cannot buy the property to rent out, or hold as an investment.
USDA Loan Guidelines: Still Have Questions?

If you are interested in a USDA loan and you still have questions, the next step is to speak with a loan officer who is a USDA loan expert who can help you with your specific questions. Get connected with a loan officer who can help you with your situation by submitting your information here.