Slide background
Slide background
Slide background


What is a DTI?  DTI stands for Debt to Income. With Rural Development Loans, the requested debt to income ratios are 29/41 but these numbers may be able to go a little higher if you have compensating factors. DTI Broken Down Your DTI is comprised of 2 numbers.  The first number represents what percentage your […]

Rural Development Loans and Your Credit Score

When looking into purchasing a new home, usually the first thing that comes to your mind is your credit. All loans are based on that MYSTERIOUS CREDIT SCORE but a Rural Development Loan might be a bit more forgiving about “your dog eating your credit card statement” two years ago than you may think. Rural […]

Refinancing Options with Rural Development Loans

When rates drop, most home owners look to lowering their interest rate on their mortgage loan, saving them money monthly.  A Rural Development Loan is no different. Rural Development guidelines do allow for a home to be refinanced into a Rural Development Loan in order to get a lower rate, but the loan must currently […]

for sale sign

Key Features of a USDA Rural Development Loan

  • Provide modest housing for moderate income families in non-Urban Areas
  • No Down Payment
  • 30 Year Fixed rate term
  • Low Monthly Mortgage Insurance, and a 1 time up front Guarantee Fee
  • Not restricted to first time home buyers
  • Can be used for Purchase or Refinance loans
  • Flexible credit Guidelines
for sale sign

Property Requirements for USDA RD Loans

  • Primary Residence Only, no rental or income properties
  • No Set Lot size Limit
  • Eligible properties include existing homes, modular homes, eligible condominiums, new manufactured homes
  • Eligible repairs and improvements may be included in the loan
  • Will require water inspection for private systems
  • Property must be in Non-Urban areas, maps available
for sale sign

Income Requirements for USDA RD Loans

  • Maximum income limits, depending on area
  • Gift Funds, Grants, Seller concessions are allowed
  • Qualifying ratios are 20% housing ratio and 41% for total debt
  • No maximum purchase price
  • Income calculation based on all adults living in the household even if not on the loan