Louisiana 100% USDA Financing is one of the last the remaining NO money down home loan available to home buyers in Louisiana. Unless you are past or present military (and have VA loan eligibility) the USDA /Rural Development mortgage is the ONLY 100% home loan available in Louisiana. The USDA program ( also known as RD, 502 Guaranteed, Rural Housing or Rural Development) offers some nice incentives to home buyers that want to purchase a home without a large down payment.
So what type of home buyer is a good candidate for the USDA loan? Let’s look at the Louisiana 100% USDA financing requirements below:
- Any Louisiana home buyer that wants to purchase a home, but may not want to put down the large down payment required by most loan programs. For first time buyers, USDA is a great solution. USDA /Rural housing can allow you to move into your new home with little to no money out of pocket. Louisiana Teachers, Police, Public Service, etc looking to live in less populated USDA eligible locations around Louisiana. Remember, there are many popular USDA eligible locations right around some major cities are still approved.
- Any prospective Louisiana home buyer that has income under their specific county limit. If you are a lawyer making $180,000 a year, the USDA mortgage is not the right fit for you. The USDA Rural Housing program is geared towards helping Louisiana’s rural communities expand by offering affordable housing to low – moderate income home buyers. Generally speaking, the USDA home loan income limits ( 502 USDA Guarantee Program) in Louisiana are as follows – Any household 1-4 persons = max income around $74,000-$80,000 per year depending on your county. Households with over 5 family members – the income limits can be over $100,000 depending on your county. You can click this link to see your county USDA income limit.
- Any prospective Louisiana home buyer that has decent credit. You do not need perfect credit in order to get USDA financing. However, like all home loans, USDA does have minimum credit score standards in place. Generally speaking you will need a 620 or greater credit score to be considered for a USDA home loan. There are other factors regardless of credit score that are also looked at. Clean payment history in the last 12 months is important, any past bankruptcy, foreclosures, etc. Credit score requirements for all home loans are always changing, please contact us to discuss your situation.
- Additional things to consider: You do not have to be a first time home buyer in order to obtain 100% USDA financing. However, if you are a homeowner that currently owns a home, especially in the same proximity, you may have an issue. Also, USDA home loans are for any (livable) single family home, town home, condo, etc that is located in a USDA eligible location – regardless of who the seller of the home is. The home just has to be in good condition and physically located in a USDA approved location. Existing mobile homes, any investors, or second home purchases are not eligible for USDA financing.
USDA Mortgage Hub is a national Rural Housing loan resource. Call us at 800-743-7556 or just submit the Quick Contact form on the right side. Mobile users will find the form at the top. We serve buyers in all 50 states, including Louisiana:
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