The USDA home loan is a mortgage program that is supported by the US government’s agriculture department. USDA stands for United States Department of Agriculture. The loan program provides prospective borrowers with an opportunity for homeownership, without any down payment. If fact, USDA remains one of the last 100% home loan available today in Pennsylvania.
Below we will discuss the steps and how to apply for a USDA rural housing mortgage:
Pre-Qualification:
The first step in the application process for a USDA rural housing mortgage loan is pre-qualification. This is done on the basis of information to evaluate whether the applicant is eligible to apply for the loan. The objective of pre-qualification is determined by the following:
- To determine the eligibility of the applicant based on his or her income and several other factors. Keep in mind USDA loans have household income limits.
- To calculate the total amount of loan needed.
- To determine if the location of the property is USDA eligible. USDA Rural housing is available only for approved locations in PA.
- A detailed explanation of the USDA program and how to apply.
Citizenship Status:
All applicants are asked about their citizenship status. If the applicant happens to be a qualified alien, he or she would be required to furnish the lender with all the necessary documentation establishing his legal immigrant status.
Credit History:
The borrower is informed by the loan originator about the credit history standards maintained by the lenders and banks, generally a min 620 credit score for USDA loans. During the approval process, the lender will review the applicant’s credit history including current debts and payment history.
Home Occupancy:
The loan originator will ask the applicant if the home will be a primary residence. Keep in mind, most of the government loan programs like USDA, VA, FHA require the home to be owner occupied. These programs are not to be used for investment properties or vacations homes.
Employment History:
Regularly employed applicants should have a solid 2-year employment history with no extended unexplained breaks. Switching jobs (one employer to the next) within 2 years is acceptable. Self-employed borrowers should have a fully 2 years of tax returns.
Home Buyers Finances:
In this step the loan originator makes a detailed enquiry on the applicant’s expenses, income and debt so that they can determine the applicant’s income potential and his ability to repay the loan. Applicants will want to ensure they have their most (2) recent employment pay stubs and last (2) years of W2’s and tax returns. The applicants previous (2) months of bank/savings statements will also be needed.
Applicants that want to learn more are encouraged to contact us above 7 days week. Proud to serve buyers nationwide including Pennsylvania, Philadelphia, Pittsburgh, Harrisburg, Altoona, York, State College, Wilkes-Barre, Norristown, Chester, Bethel Park, Williamsport, Allentown, Erie, Reading, Scranton, Bethlehem, Lancaster, Levittown, Monroeville, Drexel Hill, Plum, Easton, Lebanon, Hazleton