College Station USDA Home Loans

For qualified borrowers looking to own a home in a rural area, the U.S. Department of Agriculture (USDA) has a unique loan program to help them secure a loan. It does this through its Single-Family Housing Guaranteed Loan program, which allows lenders to extend financing to qualified borrowers without shouldering too much risk. 

The program’s goal is to help low to moderate-income families own good, modest, decent, safe, and sanitary dwelling areas as their primary residence. 

At Capital Home Mortgage, we are your trusted resource regarding USDA home loans. Not only do we handle every aspect of the loan process, but as direct lenders, we also fund your loan.

Here’s what you need to know about our USDA mortgage loans. 

Eligible Borrowers

The following are the eligibility requirements for applicants:

• The household income does not exceed 115% of the median household income of the area where the applicant will reside. You may visit the USDA Income Eligibility page to view eligible areas and income limits.
• The applicant must agree to occupy the house as their primary housing residence.
• The applicant is a U.S. citizen, U.S. non-citizen national, or a qualified alien.
• The applicant is unable to get a conventional loan without private mortgage reinsurance.
• The applicant has not been suspended or debarred from joining federal programs.

Eligible Property

The prevailing condition is that the property must be located in a rural area. It must also be a single-family dwelling unit. Existing dwellings must meet the requirements of the U.S. Housing and Urban Development property standards.

This program extends to 100% of the property’s appraised value, not the purchase price. The loan may cover closing costs if the appraised value exceeds the purchase price. You can allocate excess funds for necessary repairs if you purchase an existing dwelling.

Requirements

Unlike a conventional loan, there are minimal and less strict requirements for this loan program from the USDA. 

• Credit Score

There are no credit score requirements for this program. However, applicants must prove they can manage the debt and pay it off until maturity.

• Income and Assets

Applicants must show proof of stable income and employment to assess their ability to repay the loan. Income history requirements vary per lender and income source. You may contact our mortgage experts to learn more about our income requirements. This loan also has no asset reserve requirements, including a down payment.

• Mortgage Term

The Single-Family Housing Guaranteed Loan only offers 30-year fixed-rate loans.

Allowed Usage of Funds

This loan program limits the usage of funds as stated in USDA Section 502. The following are the only allowed usages of funds:

• Purchase of new or existing residential property as a permanent residence.
• Repairs and rehabilitation costs for an existing dwelling.
• Refinancing of eligible loans.
• Purchase of essential household equipment.
• Site preparation costs for construction.

Get Your College Station USDA Home Loan 

Capital Home Mortgage is a direct lender that offers the Single-Family Housing Guaranteed Loan Program across the U.S. More importantly, we provide a streamlined loan process with low fees and some of the most competitive interest rates. 

Contact us now at (979) 393-0049 to get started.