Killeen USDA-Guaranteed Home Loans

Brand-new houses come at prices that most low-income American families can’t afford, even with a mortgage. First of all, you need to consider the down payment. A higher price means more money for skipping mortgage insurance. And second, you need to assess your financial capacity. Even if you’ll pay for the brand-new house in installments, can your sources of income cover these installments?

However, you can access decent housing outside major American cities and districts without paying a significant price. Home values differ significantly in highly urbanized or rural areas. If you’re dreaming of a brand new house at an affordable price, you can buy houses in rural areas and get a USDA loan. Learn more about Capital Home Mortgage’s USDA-Guaranteed home loans in Killeen, Texas.

Requirements for USDA Loans

The main goal of USDA loans is to help families who wish to achieve homeownership in rural areas. Since house prices in urban areas are higher than in urban areas, some individuals may get affordable houses in rural areas and enjoy the remarkable benefits of USDA loans.

Unlike FHA loans, USDA loans don’t have credit score requirements to accommodate more applicants. However, lenders require a credit score of 640 to qualify for a USDA-Guaranteed Home Loan. When applying, you only need to submit documents that show stable income, like the following:

• Recent paycheck stubs;
• Previous two years’ W-2 statements;
• Recent two months’ bank statements;
• Latest retirement account statement.

If you have a source of income not listed above, speak to our mortgage advisor in Killeen to get a complete list of income requirements.

– Borrower Characteristics

The most crucial borrower characteristic for USDA application is the borrower’s inability to get a conventional loan. Hence, we don’t recommend getting a USDA loan if your credit history and financial capacity are at par with conventional loans. Moreover, the borrower must also be

1. A US citizen, non-citizen national, or qualified alien;
2. Will occupy the property as a primary residence;
3. Make no more than 115% of the Area Median Income (AMI).

– Limitations

You can only buy houses using a USDA loan in USDA-designated areas. Consult with our Killeen mortgage officers to know more about these areas. Moreover, the place you want to buy must be a single-family dwelling unit meeting the requirements of USDA standards. Other limitations are as follows:

• Only 30-year fixed-rate loans for USDA loans;
• 100% financing only based on the property’s appraised value, not the purchase price;
• Loan proceeds are limited to purchasing a new or existing house, repairs for an existing home, refinancing, purchase of essential household equipment, and site preparation costs for construction. 

Get a USDA Loan in Killeen Today

Capital Home Mortgage offers USDA-Guaranteed home loans in Killeen, Texas. Speak to our mortgage experts in Killeen to discover more about USDA loans. Capital Home Mortgage uses direct mortgage lending to help our clients get a smooth, easy, and painless application process. Call us at (254) 213-7343 for more information.