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USDA Loan Qualifications


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USDA mim score is 640

 

Biggest things on USDA loans are location of property & income you can check both here http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

 

click on Single Fam under Property on the left to check location

click on single Fam under Income to check your income.

 

I like USDA because they are not hard on imperfect credit & no down payment

Also, they allow the seller to pay all closing cost with no limit to the amount, this is rare

Make sure you add an extra week or so to give the loan time to close USDA has to underwrite the file after the lender approves it. USDA turntimes vary by which office is doing the loan.

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USDA is zero down

it adds on a 2% Funding Fee and has a small MIP like fee every month of .4%

The DTI should be 41% or less (it can be higher with compensating factors)

640 and above

Seller can pay closing costs

and

if the appraised value is higher than the sales price you can add the closing costs into the loan as long as you dont exceed the appraised value

Most people have a tough time with USDA because both the home and the family household income must be eligible

 

B

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Yes - the down payment is zero for USDA FHA is 3.5%

The monthly MIP (not called that with usda but it is basically the same thing) USDA .4% FHA 1.35%

So on every $100,000 borrowed you would add $400 a year for USDA and $1350 for FHA (these numbers are divided over 12 months)

 

USDA has a higher upfront fee than FHA but that is the only area where FHA is better

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