Tennessee USDA Rural Development Loan; No Down Payment Required

Mortgage and Lending with Van Dyk Mortgage NMLS:98535,Corp 3035

Tennessee USDA Rural Development Home Loan


The USDA Rural Development loan is a great opportunity for Tennessee Homebuyers.  It is one of the only loans that will allow you to buy a home without having to have a down payment.  And regardless of what is stated on the news and media, one's credit history does not have to be perfect to qualify for a home loan. A Tennessee homebuyer can qualify for a USDA Rural Development loan in only 2 years after a hardship event that may have hurt their credit.

     We also offer VA loans with zero down throughout Tennessee

Most lenders that offer The Tennessee Rural Development loan requires borrowers to a minimum middle credit score of 640, although there are some circumstances that would allow the loan to be approved with a score down to 620.  The RD loan requires a 2 year work history.  Although you are not required to have the same job, or work for the same company for 2 years, you do need to show a 2 year history in the same line of work, although if you recently graduated and are working in your field of study, we count your time in school, as time on the job.


The Tennessee  USDA Rural Development loan has two requirements that other loans programs do not have.


The first has to do with income limits, the amount of money that can be earned by all the members of the household, even those family members that are not on the loan.  Rural Development considers the income of each member of the household when calculating the annual or “do you make too much” income.  Here is a link to calculate your income to see if you qualify. 


Generally speaking, for families with 1-4 members the annual income limit is around $74,750 and families with 5-8 members the limit is around $98,650 per year.  These limits are slightly higher in areas around Nashville. In these areas the limits increase slightly to $77000 and $101,900.  Please know that if your family income is slightly over, there are calculations that we use that can allow us to reduce your calculated income for certain expenses, there are adjustments that are allowed, that may actually lower your annual income calculation, so be made be sure to give us a call before deciding you make too much money for the Rural Development Loan.


The other limitation has to do with geography, where you want to buy your new home. The RD loan is for use in areas outside of poplulation centers. This means that you wikll not be able to use this loan program to purchase home in the city limits of one of the larger towns or cities, you will have to buy a home in the outside of city limits.


Tennessee has 12 cities that have ineligible areas.  If you want to buy a home near Memphis, Jackson, Clarksville, Nashville, Columbia, Franklin, Brentwood, Murfreesboro, Cookeville, Chattanooga, Cleveland, Knoxville, Oak Ridge, Marysville, Morristown, Kingsport, Bristol or Johnson City you will need to make sure the home is in a USDA Rural Development eligible area.  You can do this by going to the Rural Development website HERE, or you can give us a call and we can help you determine if a home is eligible, or help you find homes that are eligible in the area you are interested in.  


All other ares of the state of Tennessee are currently eligible for the USDA Rural Development loan.


Give us a call today to Pre Approved for the Purchase of your New Home



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Call Today to find out about best loan for your family.

Click the Link Below to Learn about our unique Pre Approval Process 




Specializing in Government Home Loans.  FHA, VA and  USDA Rural Development


Alabama: License # 52935

Birmingham, Montgomery, Mobile, Huntsville, Tuscaloosa, Hoover, Dothan, Decatur, Auburn, Gadseden, Florence, Bessemer, Madison, Prichard, Phenix City, Homewood, Vestavia Hills

Georgia: License # 36362

Albany, Atlanta, Augusta, Alpharetta, Athens, Canton,  Columbus, Dalton, Dunwoody, Johns Creek, Macon, Marietta, Roswell, Sandy Springs, Savannah, Smyrna, Valdosta, Warner Robbins

Kentucky: License # MC305583

Louisville, Lexington, Bowling Green, Owensboro, Covington, Hopkinsville, Richmond, Florence, Elizabethtown, Frankfort, Paducah, Independence, Danville

Louisiana: License # 35486

Alexandria, Baton Rouge, Bossier City, Central, Denham Springs, Hammond, Houma, Kenner, Lafayette, Lake Charles, Livingston,  Marrero, Metaire, Monroe, New Iberia, New Roads New Orleans, Prairieville, Shreveport, Slidell, Walker

Tennessee:  License # 108470

Bartlett, Bristol, Chattanooga, Clarksville, Cleveland, Collierville, Columbia, Cookeville, Crossville, Fairfield Glade, Franklin, Germantown, Goodlesttsville, Hendersonville, Jackson, Jamestown, Johnson City, Karns, Kingsport, Knoxville, Memphis, Morristown, Murfreesboro, Nashville, Oakridge, Smyrna, Spring City


Abilene, Amarillo, Arlington, Austin, Beaumont, Brownsville, Carrollton, Cypress, Dallas, Denton,  El Paso,  Ft. Worth, Frisco, Garland,  Grand Prairie, Houston, Irving, Killeen,  Lubbock, McAllen, McKinney, Mesquite, Midland, Pasadena, Plano, San Antonio, Tyler, Waco, Wichita Falls


We offer VA Loans,  FHA Loans, USDA Loans, and more across Alabama, Louisiana, Texas and Tennessee


Bill McDonald NMLS # 95835

VanDyk Mortgage NMLS # 3035


Bill McDonald-VanDyk Mortgage

705 Gate Ln Suite 202 104

Knoxville, TN 37909

(865) 686-8711

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Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

People go to the news before they would ever take the time to speak to a professional in any industry. Quick food & quick information are what we are all about. This leads to a  lot of mistakes.  The media is not interested in you.

Mar 30, 2013 11:19 AM #1
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Bill McDonald

VA, USDA, FHA Government Loans - (865) 686-8711
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