USDA Rural Development Loan Requirements

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).

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