As most of us already know, getting a house would most likely require you to get a mortgage. But not everyone is qualified to get one. Mortgage requirements have been more stringent for the past couple of years that it’s getting even more difficult just to apply for a loan.
While an accredited mortgage company in cities like Nashville can give you options to consider, your eligibility to apply for a loan still depends on your capacity to pay. The USDA home mortgages are a great alternative for those with very low to moderate incomes to afford a home loan.
The USDA Home Loan requirements may vary depending on the USDA mortgage that you’re considering. Two of the most popular options are the USDA Direct Loan and the USDA Guaranteed Loan.
USDA Guaranteed Loans
The USDA Guaranteed loans are accessible to all qualified borrowers whose generated gross income is above the USDA Direct average wage earners in a given location. These loans would require borrowers to at least have an income that wouldn’t go over 115 percent of the average median income for the area that’s located in the USDA Rural Development Map.
Applicants should have an average credit score rating that’s no less than 640, no outstanding or pending debts, as well as no bankruptcies filed or even foreclosures that haven’t been resolved or closed in the past three years.
USDA Direct Loan
Meanwhile, the USDA Direct loan is only accessible to little revenue generated wage earners who are looking for a home that’s within the USDA desirable area. They should at least generate an income that’s within 50-80 percent of the average median generated revenue in a particular location. They should also lack adequate and even sanitary housing to apply for one.
In addition, the borrowers must prove that they have a steady income and can afford the monthly payments on top of their existing debts. Borrowers who have a low credit score may still qualify for a loan depending on their lender.