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