Buy Your Dream Home with Confidence
Purchasing a home is one of the most important financial decisions you can make. Getting pre-approved can provide you with better-negotiating power. You will be aware of the actual amount you can borrow. Real estate agents will take you more seriously once you are pre-approved for a mortgage. This may further help by saving you time throughout the entire process.
Initiate Your USDA Loan Application with Us
If you meet the required income guidelines, you are eligible to buy a home in a qualifying rural area with zero down payment. We can help you understand your USDA Home Loan requirements in PA as these loans are a good option for many people, and come especially handy for certain first time home buyers. These loans, unlike conventional loans, have no down payment requirements and generally require low credit scores. The monthly guarantee fee in most USDA Loans will also be lower than the FHA monthly mortgage insurance premium.
Learn How USDA Loans Work
All USDA loans in PA are backed by the U.S. Department of Agriculture. These loans offer affordable mortgage options for purchasing homes in rural areas. If you are buying a home, you can potentially get a USDA loan with a fixed interest rate and the repayment period of 30 years.
You can also refinance your USDA Loan into a new loan if you already have one. But you cannot refinance with a USDA Loan if you currently have other types of loan.
Eligibility Requirements for USDA Loan
In order to get the USDA Loan, a person must meet basic eligibility requirements set by the USDA:
- The property that you are buying needs to be located in a rural area as specified by the USDA. Luckily the definitom of “rural,” that the USDA provides if quite expansive and includes many suburban areas as well.
- Also, depending on the area designation, there are certain specific population requirements under the USDA Eligibility standards.
- The USDA requires that the applicant should have a stable income under the USDA Loan PA Income Limit that is justified and is likely to continue. Generally, the lenders check this by requesting two years’ income tax returns and the last paystubs to confirm consistent income. The total projected income of each adult member in the family is also projected as it counts towards the household limit regardless of whether that member is a part of the loan or not.
- Other than a stable income, the applicant must have a credit history that proves his or her ability and willingness to repay the loans.
- DTI, or debt-to-income ratio, is calculated and is set at 41 percent by the USDA. This means that the borrowers should spend not more than 41 percent of their monthly income on debts.
- The purpose of a USDA Loan is to provide a safe and healthy residence for households that have low to moderate-income. The eligible homebuyers can purchase, build or refinance a home through the USDA Loan.