Comments on: USDA Rural Home Loan Qualifying and Income Limits

By: Amber

Amber — Fri, 27 Jan 2012 14:47:03 +0000

do married couples have to apply together for a rural loan or can just one party get the loan?

By: Tony

Tony — Sat, 06 Aug 2011 15:09:02 +0000

Number in Family: If my elderly parents will be living with me and have a SSN retirement, of course verified, can I use them as Other Income to qualify for a loan. They will make the applicants dwelling their primary residence.

By: pauldunn

pauldunn — Mon, 23 May 2011 01:36:32 +0000

@ Judy – A prior short sale is treated as a collection by the USDA and it will be up to the Underwriter if you will qualify or not. That is a very subjective thing and you should write a letter explaining what happened and why it wont happen again.

Regarding the new home lender. I would not suggest using the new home lender as they are typically owned by the builder and substantially inflate your costs when getting a new loan. With a USDA loan, you should not have to bring any money to the closing anyway and in most cases we structure them so that you can actually get your earnest money deposit back.

By: Judy

Judy — Mon, 23 May 2011 01:25:55 +0000

If I meet the Credit Score and income eligibility, but have had to short sale my prior home in 2009, can I still qualify for a USDA loan?

Also, is it not better, when purchasing a new home, to use the new home lender with USDA because of the closing cost incentive? I’ve heard when you do that, sometimes you do not have to bring any money to closing? Is that correct?

By: pauldunn

pauldunn — Mon, 31 Jan 2011 20:32:49 +0000

@ Tunkie – That does not sound like a USDA Guaranteed loan, if you are having financial issues you should talk with your lender and let them know.

By: Tunkie

Tunkie — Sun, 30 Jan 2011 04:27:13 +0000

I landed my USDA loan 3 years ago. I am extremely happy with my home. The waiting, red tape, back and forth..”yes we have funding..no, we don’t”—Was excruciating. Nevertheless, worth it. I had just over a 700 credit score, met all their criteria and still they gave me a hard time about my credit card bills (which, at the time were quite low). They look at my credit annually and I am terrified because this year, I am going to have to file for bankruptcy. I want to keep the house and can afford the house payment..no issue there..But I do not know if they will continue to subsidize my interest with a bankruptcy (medical issues) on my credit report..The lack of a subsidy would cause my monthly mortgage to skyrocket.

By: pauldunn

pauldunn — Thu, 18 Feb 2010 00:21:05 +0000

It is highly unlikely because those liens will take a priority position. You may want to speak with a local lender about their particular requirements in that case.

By: Marie

Marie — Mon, 08 Feb 2010 23:58:04 +0000

If you have liens from federal or state but are making monthly payments on. Can you still get a USDA home loan?

By: pauldunn

pauldunn — Wed, 20 Jan 2010 14:34:42 +0000

Lea – most lenders have an overlay specifying the amount of time that a bankruptcy must be seasoned. Most USDA lenders are at 3 years, however with mitigating circumstances it may be less.

By: pauldunn

pauldunn — Wed, 20 Jan 2010 14:31:46 +0000

Lea – USDA or FHA are excellent choices for people with lower incomes.