USDA Home Loans In Fort Worth

The United State Department of Agriculture (USDA) offers a zero down payment mortgage program to eligible rural homebuyers. There are two types of USDA home loans, direct and guaranteed, offering no money down but with different eligibility requirements. USDA home loans are designed for primary residence only.

• USDA Direct Home Loan

This program, also known as the Section 502 Direct Loan Program, aids low- and very-low-income applicants in obtaining decent, safe, and sanitary housing in eligible rural areas by providing payment assistance to boost an applicant’s repayment ability. Payment assistance is a sort of subsidy that temporarily lowers the mortgage payment. The adjusted household income calculates the aid amount.

Borrowers looking into the USDA Direct program must have a household income that is less or equal to the low-income limit for the area, also known as the AMI or area median income. As the name implies, borrowers must apply directly to the USDA regional office where the subject property is located.

• USDA Guaranteed Home Loan

This program helps lenders work with low- and middle-income rural households to make homeownership possible. Giving people the chance to buy a home at an affordable price increases prosperity, which in turn makes communities grow and improves the quality of life in rural areas.

Purchase, construction, rehabilitation, improvement, or relocation of a dwelling in a rural area that qualifies for 100 percent financing is available to eligible candidates. The program gives approved lenders a 90 percent loan note guarantee to decrease the risk of issuing 100 percent loans to qualifying rural homebuyers; hence, no down payment is required.

USDA Guaranteed Mortgage Eligibility Requirements

Applicants for the USDA Guaranteed Home Loan program must meet the following minimum requirements:

1. Household income must not exceed 115% of the area median income (AMI);
2. Must occupy the property as a primary residence;
3. The subject property cannot be income-generating;
4. Must be a US citizen or a qualified resident alien.

Apply for a USDA Guaranteed Home Loan

Call us at (817) 779-7133 and speak with our USDA home loan specialists to learn more about the qualification requirements of USDA home loans. Apply now and get started to get prequalified or preapproved.