Qualifying for USDA Mortgage 2015

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Mortgage and Lending with USDA / FHA Mortgage Source

So what does it take to get pre approved for a USDA Rural housing loan ?  It’s actually still pretty easy considering all the changes that have happened in the mortgage market over the past 7 years. Mortgages in 2015 are “back to basics” in most cases.  Long gone are the days of qualifying for a loan with no income, poor credit, etc.   Homebuyers today that have decent credit, stable documentable income and manageable debt usually have no issue getting pre qualified for a mortgage today.

All of the Government home loans ( FHA, VA included) pretty much require the same things in order to get pre approved.  Below we have outlined some key points.

Credit – in most cases a 620 credit score is needed to be pre approved for any of the government home loan today - FHA, VA, USDA. But keep in mind that a 620 credit score does NOT guarantee loan approval as all lenders / banks have additional waiting requirements (overlays) in regards to home buyers with any past bankruptcy, foreclosure, or short sale.  Additional for USDA Rural loans, a clean 12 month payment history on all other credit trade lines is important.

Income – It has to be stable and documentable in 2015.  The days of stated income or no doc loans are long gone.  Documenting income properly can sometimes pose an issue with self employed or 1099 workers, especially those that have not been self employed for at least two years.  Banks and lenders generally want to see a 2 year employment history.  Small gaps in employment history are just fine, just as long the gap isn’t too long, or unexplainable. 

100% USDA Loans -  these loans are available to any homebuyer looking to purchase a home in a rural defined locations. Any single family located (HUD approved) in a approved locations is eligible. Click here for the USDA eligibility map.  USDA also have income limits based on the number of members in the household, county, etc.  Please click here for more information on FL USDA income limits. USDA, along with VA, are the only mortgages in Florida that offer 100% financing with NO down payment. All USDA FAQ’s are listed by clicking here.

Homeowners that currently have a USDA should also look into USDA streamline refinance options available today. These refinance programs allow homeowners to refinance REGARDLESS of the loan to value. If you currently have a USDA Mortgage, click here to learn about the Pilot program.  Interest rates are currently at all time low levels, it’s a great time to refinance.  

Please contact us at 904-302-6060 with questions, or visit www.UsdaMortgageSource.com for more details.

Serving all of St Johns and Flagler County - Elkton, Fort Matanzas, Fruit Cove, Hastings, Orangedale, Palm Valley, Ponte Vedra, Ponte Vedra Beach, St. Augustine, St. Augustine Beach, Switzerland, Vilano Beach,Beverly Beach, Bunnell, Flagler Beach, Marineland, Palm Coast. 2015

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