USDA loans are a fantastic loan option when buying a “rural home”. It allows a 0% down payment, which is a huge benefit. But it is important to keep in mind that USDA loans also have additional requirements to qualify for their mortgage vs conventional, FHA or VA loans. Here is the list of the major requirements to know when applying for a USDA mortgage:
You can not own any other real estate
There are income limits based on your family size and county. Here is the website to verify if your family makes too much money to qualify for a USDA loan: Income Limits For USDA loans
The home must fall in a “Rural” area. Now what you and I think is rural may not be considered Rural by the USDA, so to be safe look up the home and make sure it falls in a USDA approved “Rural” area. Linkto see if the home is in a Rural area.
Make sure you Mortgage Lender receives a “GUS” loan approval. “GUS” is the automated loan approval system that USDA uses top approve loans. This system is different than the automated loan approval system used for FHA, VA or Conventional loans.
Like I mentioned USDA loans are a fantastic loan option. But before assuming that you are going to get approved for a USDA loan, make sure you do your research on the requirements. And make sure you find a USDA knowledgeable Mortgage Lender!