Speak to a USDA Specialist 877.516.9342

*  Reservation of funds does NOT commit you to the purchase of a home.  Reservation of funds only secures you the option to use USDA funds for purchasing a home.

**Please note once all funds are reserved we will no longer take USDA applications.  However, you may inquire about the FHA 3.5% Down Payment government program.

Trust Company Bank is not endorsed nor affiliated with the USDA.

 

 USDA Rural Development Mortgage Overview

Features	Benefits
Down Payment is not required	Borrowers without savings, or who wish to retain their savings qualify
100% financing	More Americans become homeowners
No reserves are required	Buyers do not need to provide bank statements
Expanded qualifying ratios	Buyers with satisfactory credit may qualify with higher Debt-to-Income ratios to accommodate high cost housing areas, etc
Seller is allowed to pay Buyer's Closing Cost (ask USDA Specialist for details)	Reduces out of pocket costs for Buyers
Low minimum credit score (640 minimum credit score required)	Buyers with nontraditional or no credit histories may qualify
Streamlined processing with 640 credit score	No explanations on credit with 640+ score
No monthly PMI	No monthly mortgage insurance means a lower monthly payment for the Buyers and additional cash each month
Generous income limits based on 115% US median (not HUD)	Deductions are available for dependents, daycare, elderly households, etc. to assist more individuals and families in qualifying
No maximum purchase price limit	Buyers choose the home that meets their needs and repayment ability
NOT just for first time buyers	All home buyers are eligible for benefits
Modular Homes may be eligible	Purchases only (Manufactured Homes are NOT Eligible)
Education/training substitute for job tenure	Income history for ratios is waived.
USDA is the lowest payment loan option for buyers wanting a FIXED Rate	No MI, very low 30 YEAR FIXED rates and very easy to qualify

A USDA Guaranteed Loan is a Government Insured 100% Purchase Loan. These loans are only offered in rural areas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Check your USDA Eligibility HERE

 

 

Guaranteed Rural Housing Loans

To be eligible, applicants must:

• Have an adequate and dependable income;
• Be a U.S. Citizen, qualified alien, or be legally
  admitted to the United States for permanent residence;
• Have an adjusted annual household income that does not exceed the moderate income limit established for the area. A family’s income includes the total gross income of the applicant, co-applicant and any other adults in the household. Applicants may be eligible to make certain adjustments to gross income— such as annual child care expenses and $480 for each minor child—in order to qualify.
  USDA Rural Development field offices can provide information on the moderate income limits for the areas that fall within their jurisdiction, and can provide further guidance on calculating household income.
• Have a credit history that indicates a reasonable willingness to meet obligations as they become due;
• Have repayment ability based on the following ratios: Principle, Interest, Taxes, and Insurance (PITI) divided by gross monthly income must be equal to or less than 29 percent. Total debt divided by gross monthly income must be equal to, or less than, 41 percent.
  

Useful USDA Links and Documents

State Totals Loans 2001 - 2007	USDA Rural Development Voucher Program
Section 514 Farm Labor Housing Loans and Section 516 Farm Labor Housing Grants for Off-Farm Housing	Guaranteed Loans Under the Section 538 Guaranteed Rural Rental Housing Program (GRRHP)
Chapter 1: Overview of Guaranteed Rural Rental Housing	Chapter 2: Lender Eligibility and Approval
Chapter 3: Lender Underwriting	Chapter 4: Loan Guarantee Application Pocessing
Chapter 5: Construction Requirements	Chapter 6: Program Fees
Chapter 8: Property Management	Chapter 9: Insurance Requirements
Chapter 10: Claims	Chapter 11: Environmental Requirements
Chapter 12: Secondary Market