The USDA Loan 

The USDA loan program was created to help increase home ownership in areas between high density residential and agricultural land. The USDA loan is a standard 30 year fixed rate mortgage made by a lender that is guaranteed by the United Stated Department of Agriculture (USDA).   

Highlights:

• Down Payment and Closing Costs:

• 100% financing available. No down-payment is required.
• Gift funds can be used for down payment and closing costs allowed.
• Seller may contribute up to 6% towards buyer's costs.

• Credit Qualifying Guidelines such as:

• Minimum credit score of 640.
• Maximum family income.
• $74,050.00 for families of 1-4.
• $97,750 for families 5 or more.
• The property must be located in an eligible area approved by the USDA.  Eligibility can be checked at the following web site: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11.
• Self Employment is acceptable.

• Property Specific Guidelines:

• The USDA loan is for primary residences only.
• Borrower's who currently own a home and would like to convert their existing residence into a rental property may not use the USDA loan if their existing residence is within a reasonable driving distance from the new property.
• Condominiums and Planned Unit Developments (PUD's) located within the eligible area are acceptable with a minimum of 51% ower-occupancy within the complex.
• Income producing properties are not eligible.
• Property flip transactions wherre the seller has not been on title for at least 90 days prior to the purchase contract date are not eligible.
• Manufactured homes are not eligible.
• No inspections are required (ie. pest, roof, etc.)

• Additional Underwriting Guidelines:

• Maximum Loan Amount is $417,000.00.
• Higher debt-to-income ratio's than other home loan programs.
• Less than two years on the job is allowed.
• Self Employment is acceptable.

        To download a USDA flyer, click here: USDA Flyer.pdf