Here are the highlights of USDA Mortgages
. Down Payment: 0% down payment
Closing Costs: up to 6%
. Credit Score: Minimum none–but lenders create overlays..typically 640 to get a GUS Automated approval
. Lower monthly mortgage insurance costs (PMI) versus FHA
. There is NO maximum set loan amount limit with USDA Rural Housing.
. No large savings are needed to qualify for USDA loans.
The debt to income, or DTI is limited to 45% – lower than most other loan programs.
The location of the home determines if it will be a USDA loan.
. The home can be a regular sale, short sale, foreclosure home or bank owned home single family, townhome or approved condo.
Mobile/Manufactured homes and “build on your own land” not available.
. Applies for First-time home buyers, or move-up buyers.
No special first-time buyer’s class, down payment assistance, or bond money is needed.