Amarillo USDA Home Loans

If you’re looking for a passport to find permanent habitation in one of the exotic areas in Amarillo, you’re in luck. USDA Guaranteed Home Loans can be your key to a brand new home to call your own in one of the many nearby beautiful rural areas. 

This program is sponsored by the United States Department of Agriculture and provides guaranteed financing, meaning there’s no need to remit a down payment. Additionally, the USDA can offer low-interest rates, monthly payments, and various repayment options.

Amarillo USDA Guaranteed Home Loans are available to anyone purchasing a home in an eligible rural area. If you’re unsure whether your place is suitable, you can speak to our Home Loan Specialists at Capital Home Mortgage. We can help you know whether you qualify and guide you through the process.

USDA Home Loan Requirements

While USDA home loans offer several benefits, they are not for everyone, as there are a few requirements you’ll need to meet before you’re eligible. They also come with more terms and conditions than other types of mortgages with their 100% financing nature.

A credit score of at least 640 and an income limit based on the area median income or AMI can help approve your loan.

Borrower Eligibility

As a borrower, you can only be eligible for a USDA home loan provided you meet the following requirements:

• You agree to reside in your chosen property permanently, which means you must make it your primary residence.
• You’re a U.S. citizen, qualified alien, or non-citizen national.
• You have a household income not exceeding 115% of your area’s median household income.

Additionally, it’s essential to manifest your incapacity to acquire a conventional loan without mortgage insurance, and you must not be prohibited from joining any federal program like USDA loan programs.

Property Eligibility

Remember that not every area in the U.S. is USDA eligible, so it’s crucial to check your location before beginning the loan application process. You can use the USDA Eligibility Map to see if your chosen area qualifies.

The USDA has designated certain areas of the country as appropriate for rural properties. If you want to purchase a home in one of these zones, your property must meet U.S. Housing and Development standards. Multi-person living spaces can’t be apartments. The USDA only allows single-family dwelling units.

Limitations & Restrictions of a USDA Loan

Like other types of financing, USDA home loans have certain restrictions and limitations. In particular, this type of loan has two rules:

1. It is only available at 30-year fixed rates. With this loan, you can’t enjoy the perks of a shorter loan term or an adjustable-rate mortgage.
2. It only offers 100% funding based on the appraised value of the property rather than its purchase price. This financing makes buying more expensive up front if not enough equity has been built yet.

In addition, while you can use your loan proceeds towards anything you want, there are limits on their use, which are only limited to:

• buying essential household equipment
• purchasing a new or existing house as your permanent residence
• construction site preparation costs
• existing dwelling repairs
• refinancing

Apply for a USDA Home Loan in Amarillo

As a direct mortgage lender and servicer, Capital Home Mortgage offers flexible home financing products and services to anyone in Amarillo looking to purchase a home. We’ll work with you to obtain your USDA home loan and assist you through the process.

Contact us today at (806) 589-3428 to start your application!