USDA Rural Development Home Loan
Coverage: 97% of the U.S.
Down Payment: $0 required.
Qualification Criteria:
Household Income:
Typically less than 115% of area median.
1-4 size: $103,500 in most areas.
High-cost areas: Up to $121,000.
4 size: Up to $160,000.
Debt Ratios:
Housing payment: ≤29% of monthly income.
Total debt: ≤41% of monthly income.
Credit Score:
Myth: Must have 640.
Reality: Varies by lender, some accept as low as 580.
Under 640 may require manual underwriting.
Eligibility Considerations:
Credit History: Bankruptcies and foreclosures have waiting periods.
Property: Must be in an eligible area (typically <20,000 residents).
