Brownsville USDA Home Loans

For many prospective buyers, owning a home can seem impossible due to financial obstacles like down payments and closing costs. For this reason, Capital Home Mortgage is happy to provide Brownsville homebuyers with the USDA Rural Home Loan.

The USDA loan is one of your best choices if you’re looking to purchase a home in a USDA-qualified area.

What You Need to Know About USDA Home Loans

The USDA loan is one of the most advantageous mortgages for rural and suburban homebuyers. These government-backed mortgages, issued through the Rural Development Guaranteed Housing Loan program, make homeownership more affordable for low- to moderate-income rural residents who may not qualify for conventional mortgage products.

USDA Loan Eligibility and Property Requirements

To qualify for a USDA loan, both the borrower and the property must meet USDA loan eligibility requirements. The property’s size, location, condition, income, and other qualifying factors determine your eligibility for a USDA loan.

The basic eligibility requirements for USDA home loans are as follows:

• Residency:  

Must be a citizen of the United States, a legal permanent resident, or a qualified alien.

• Income: 

Household income cannot exceed 115% of the area’s median income.  

• Employment: 

Must have at least two-year history of stable and verifiable employment history.

• Debt-to-income ratio (DTI): 

Debt payments should not be more than 41% of your gross income.  

• Property Eligibility: 

To qualify for USDA loans, the property must be less than 2,000 sq. ft. without an in-ground swimming pool.

• Occupancy: 

Single-family USDA loans can be used for primary residences only.

Credit Score Requirement for USDA loan

The USDA loan requires a minimum credit score of 640. But if you don’t have enough credit to get a credit score or your score is lower than 640, you can fill out a credit history worksheet, Form RD 1944-6, for consideration. This form allows you to use rent, utility bills, and phone bill payments to prove your creditworthiness to the lender.

Benefits of the USDA Home Loan

USDA loans could be an excellent option for borrowers who don’t qualify for conventional mortgages or for whom other government loan programs, like the FHA or VA, don’t make financial sense. The benefits of USDA loans to homebuyers include:

• Zero Down Payment:

 With a USDA loan, the minimum required down payment is $0.00.

• Low Fees: 

The borrowers only need to pay a 2% guarantee fee on the total loan amount. However, this cost can be included in the mortgage rather than paid upfront.

• Great Interest Rates: 

The interest rates on USDA loans are typically lower than those on conventional or FHA loans. This is helpful because it means borrowers with less-than-perfect credit can access the same interest rates as those with perfect credit.

• Streamlined Refinancing Process: 

With the USDA’s streamlined program, homeowners can refinance their mortgage in as little as three weeks. Credit checks, appraisals, and property inspections are no longer required. 

Get Started with Your Brownsville USDA Loan Today!

USDA loans can be a lifesaver for those who have had trouble getting approved for a conventional mortgage. The USDA mortgage requirements are forgiving and flexible, and they may be the ticket to homeownership for those with lower incomes.

 Contact a mortgage expert at (956) 307-3422 today to learn more about USDA loan requirements and how to get started with the application process.