![]() Minimum Credit Score - There are no minimum credit score requirements for a USDA loan, but you do need an acceptable credit history.For example, if monthly income is $5,000 then the monthly debt payments cannot be greater than $2,050 ($5000 x 41%). This means that monthly debt repayments such as auto loan payments, student loan payments, and your minimum credit card payments cannot exceed 41% of your monthly income. The DTI ratio is defined by Fannie Mae as the total monthly debt payments for loans such as auto & student loans and the sum of minimum monthly payments for credit cards divided by monthly household income. Debt Requirement - Your debt-to-income (DTI) ratio must be less than 41%.The income of anyone in your household over the age of 18 and not a student will be counted towards your household income.For example, if the median household income in the area is $100,000, to be eligible, your income must be below $115,000 ($100,000 x 115%). Your annual household income cannot exceed 115% of the median income for your county.in these cases, the lender can make exceptions regarding the borrower’s finances. ![]() USDA loans also have clauses that allow for unforeseen circumstances such as loss of a job, medical emergency, or other events beyond the applicant’s control. There must be a dependable source of income for payments, which can be proven by showing tax returns for the past 24 months.USDA loans cannot be used for real estate investment purposes, vacation homes, and the purchase of farms. Primary Residence - The home must be the primary residence of the home buyer.If your county is not available in the above USDA eligibility calculator, your area is not eligible for a USDA loan. The USDA considers an area to be rural if its population is 10,000 or less, or if its population is 20,000 or less and it is not located inside a metropolitan statistical area (MSA). Location - The home must be located in an eligible rural area.Residency Status - The individual taking out the USDA loan must be a US citizen or lawful permanent resident.Here are the following requirements for a USDA Home Loan: Criteria The USDA eligibility calculator above can determine eligibility with some basic information. USDA loans have several criteria in order to determine loan eligibility. Find out more about USDA Loans What are the USDA Loan Eligibility Requirements?
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