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USDA Eligibility

USDA Eligibility Requirements

The USDA Home Loan Program was established to provide affordable and accessible housing opportunities to Americans.  Like any home loan program, there are eligibility requirements.  Below, you’ll find information regarding some of the major eligibility requirements. 

Credit Qualification

The USDA Home Loan Program was created to make homeownership accessible, not unobtainable. Many people don’t realize the USDA Home Loan Program’s qualification criteria is less rigorous than conventional mortgages. In short you don’t need perfect credit to qualify for the USDA Home Loan Program.

Our expert team is standing by to discuss your credit qualifications.

Geographic Eligibility

Another commonly misunderstood criteria about the USDA Home Loan Program concerns where you must live to be eligible. The USDA home loan is often referred to as the “rural development” home loan. The fact is, homes in 97% of the geographic United States are eligible to be purchased with the USDA Home Loan Program.

Our expert team is standing by to review your area’s eligibility.

Not Just for First Homes

Perhaps due to the many benefits, including no down payment requirement and low/fixed interest rates, the USDA home loan is often mistaken as only for first-time homebuyers. However, as long as the home will be your primary residence, the USDA loan can be used to purchase your first home or your next home.

Our expert team is standing by to discuss your home goals.

The Qualification Process Is

Just Call us at (844) 824-1735

Income Eligibility

Perhaps the MOST COMMON MISUNDERSTANDING about the USDA Home Loan Program concerns income eligibility. It is true that your present annual income must be below a certain threshold to qualify. However, what is misunderstood is how generous this income threshold is. While these income limits are based on county/state, the lowest income limit in the country is $78,200 (household of 4 or less) and $103,200 (household of 5+). Note, some counties have much higher income limits. To clarify, under the worst-case scenario county limit, you can obtain a USDA Home Loan if your 4-person household income is less than $78,200.

There are also numerous compensating factors that may increase the applicable “income limit” to your benefit (i.e., bring your income under the limit for qualification). These compensating factors include, but are not limited to, number of dependents/children, child care expenses, unreimbursed employment expenses, and tax reported business/real estate losses.

As you’ll note, calculating income eligibility considers many factors. Our team of specialists will be happy to help you evaluate your income.

Leaders Credit Union is an
Equal Housing Lender

Forward Lending Solutions
c/o Leaders Credit Union
P.O. Box 10008
Jackson, TN 38308

(844) 824-1735

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