USDA LOANS

RURAL DEVELOPMENT

USDA Rural Development loans are designed for low to moderate income families located in an eligible area to receive up to 100% financing for the purchase of a new home.  Since the program is designed for low to moderate income families, there are adjusted income limits for each county.  The combined income for all adults living in the household can NOT exceed the annual income limits set for the county the property is located.  The maximum adjusted income limit is also determined by the number of people occupying the home.  This includes all adults and children.  The gross household income can be higher than the adjusted income limits for each county provided allowable adjustments to the income are made.  Adjustments to the gross household income include the deduction for documented annual childcare (day care) expense for children 12 years and younger.  An annual deduction of $480 for anyone under the age of 18 may also be applied.

EXAMPLE:  Utilizing the chart below and assuming the property is located in Clay county Florida, a 4 person family (2 adults, 2 children, one is age 12 or younger) has a gross income of $85,860.  Child care for the child age 12 or less is $10,000 annually.  Is the threshold income at or below the limit?   YES.  $85,860 less $10,000 child care less $480 for each child = $74,900. 

Check Property Eligibility

Check Income Eligibility

PROGRAM HIGHLIGHTS:

• 100% Financing

• LTV based on Appraised Value

• Closing Cost can be financed*

• 580 Minimum Credit Score for all borrowers

• NO PMI

• Income limitations apply and the property must be located in an eligible area

  • Check Income Eligibility and Property Eligibility

• 2% Guaranteed Fee is required (may be financed)

• New Manufactured Homes Ok.  Existing Manufactured Homes are ineligible

• Single Family Homes and Modular Homes - No Restrictions

• Non-Occupant Co-borrowers are ineligible

• Properties located in a Special Flood Hazard Area are NOT eligible

• Manufactured Home Dealers MUST be approved by USDA

Click for MANUFACTURED HOME SETUP REQUIREMENTS