USDA mortgages are back in business. Last week USDA, or as some people call them Rural Housing, announced lenders may begin submitting new loan requests to them. This is good news because it is one of the last 100% financing available for home buyers.
USDA mortgages are not a loan for everybody. There are requirements and guidelines the home buyer must meet to qualify for a USDA mortgage. Some of the guidelines are;
- Property location must qualify for USDA
- Homebuyers' incomes must be below USDA county limits which is 115% of the median income for the county
- Housing ratios and total debt ratios must be below USDA limits, 29% housing and 41% total debt.
- Home buyer's FICO score must be above USDA limits.
But if the home buyer has fair or better credit and a stable income this can be a great program for them. For more information on USDA mortgages in North Carolina contact Shay Campbell.