You don’t want to live your whole life in a rented house, do you? Renters can now become proud homeowners and attain the American Dream. Considering a USDA loan in MA will open doors for you to purchase your dream home. If you’re a first-time homebuyer, a USDA loan is the best home loan, which is backed by the United States Department of Agriculture (USDA). The USDA home loan comes with low mortgage rates, affordable payments, and flexible underwriting process. You can also choose 100% financing and no down payment is required. Wondering how to qualify for a USDA home loan? Below are some important criteria that will help you qualify for USDA home loans in MA.
How To Qualify For a USDA Loan
Eligibility For a USDA Loan
To qualify for a USDA loan, you must meet the basic eligibility requirements set up by the U.S. Department of Agriculture (USDA), which includes, income, credit, property usage, and home location.
Credit Requirements
Your income and credit history should be stable. This shows that you have the ability to pay back the loan. There is no requirement for a minimum credit to qualify for a USDA loan. If you have a good credit score, then you’re eligible for guaranteed USDA loans, approved by an automated underwriting system.
Eligibility Factors
- Credit Score
- Credit History
- Credit Utilization
- Repayment Patterns
If your credit score is low, you may be eligible for a USDA loan. However, you’ll require credit verification from alternate sources, such as insurance payments, rent payments, and utility payments.
Income Requirements
To qualify for a USDA loan, the rural development home loans requires you to have a verifiable, stable income. Income that is not verified won’t be counted as repayment income. To qualify for income requirements, lenders look for two years of consistent employment and will request you for a verified two years income tax returns and recent paystubs.
Location Requirements
The USDA Loan is created to help people of rural areas purchase a residential home. You’ll be surprised to know that many urban and suburban areas qualify as rural areas.
Property Requirements
USDA loans are for eligible low to moderate income people who want to build, purchase, repair, or refinance a home. The home must be your primary residence. USDA home loans cannot be used to purchase a property to produce income. However, if the property is no longer used for commercial purpose, then the property may still be eligible for purchase.
If you’re looking for a USDA loan in MA, Drew Mortgage Associates, Inc. can help! Drew Mortgage Associates, Inc. is a mortgage company in Boston that can help provide mortgage loans with a low-interest rate or reduced term. Our home loan officers are highly trained professionals that can help you identify the best mortgage program that’s right for you and will guide you throughout your home loan process. So what are you waiting for? Call Drew Mortgage Associates, Inc. today!
