What is a USDA loan?
A USDA loan is a competitively priced mortgage option that helps to make purchasing a home more affordable for low-to-moderate income buyers living in designated rural areas. The U.S. Department of Agriculture backs USDA loans in the same way the Department of Veterans Affairs backs VA loans for eligible individuals. If you're buying property in a rural area such as Westport or Dartmouth, MA, the Rural Housing Service (RHS) offers a no-money-down loan program.
The USDA home loan is specifically available for rural properties only and was developed to encourage home purchases in rural areas.
What are the qualifications for a USDA loan?
In order to qualify for a rural development home loan, you must meet certain requirements.
Your household income cannot exceed the maximum limit set by the USDA, and your property must be located in an eligible rural area. Click here to research the qualifying amounts in your local area.
Minimum FICO score of 620
The home you are interested in purchasing must be single family residence (no multi-units)
How to apply for a USDA loan?
To apply for a USDA home loan, you will need to submit a loan application to the USDA through Onshore Mortgage. You will also need to provide proof of your income, asset, and employment information. The USDA will review your application and determine if you are eligible for a rural development home loan.
What are the required documents for a USDA loan?
In order to qualify for a USDA home loan, you will need to provide certain documents to the USDA. These documents include proof of your income, asset, and employment information. You will also need to provide documentation of your mortgage payments, including your monthly mortgage statement and payment history. The USDA will use this information to determine if you are eligible for a rural development home loan.
When you apply for a USDA home loan, you will need to provide the following documents:
Your most recent tax return
Proof of income (pay stubs, W-2 forms, etc.)
Asset information (bank statements, investment account statements, etc.)
Employment information (letter of employment, pay stubs, etc.)
Proof of U.S. citizenship or legal residency
A credit report
A list of debts and monthly payments
Proof of homeowners insurance
An appraisal of the property you are buying
Copy of the sales contract
The USDA home loan program is a great option for rural homeowners looking to purchase a home with no money down. If you're considering a USDA home loan, be sure to contact Onshore Mortgage to learn more about the process and how to qualify.
*Credit and income restrictions do apply. Please visit our Disclosures page for a detailed breakdown of all loan types.