USDA Loans – Understanding the Basics

The USDA Loan Program is sought after by homebuyers due to 100% financing, affordable terms, and flexible credit qualifying. If you’re a homebuyer looking to purchase in a USDA eligible area, you may be able to qualify for this rural housing program. Metroplex Mortgage Services in an approved lender under the USDA Single Family Housing Guaranteed Loan Program and we are known for our experience and expertise with the USDA home loans.

What is a USDA rural home loan?

Per USDA Rural Development, “This program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas.”


What are unique benefits of the USDA Loan Program?

100% Financing: USDA loans offer no down payment, which when compared to FHA or Conventional programs, offers an immediate reduction in out of pocket expenses.

USDA Loans provide the ability to Finance Closing Costs and Pre-Paid items (Settlement Charges): USDA loans offer the ability to finance out of pocket settlement charges in cases when the appraised value is higher than the sales price. This is a unique feature that USDA loans provide. This added flexibility allows homebuyers the option to finance these expenses.

No Maximum Loan Limits: Mortgage amounts are determined by loan qualifying, thus not restricting qualified applicants by setting loan limits such as FHA and Conventional.

Flexible Credit Qualifying: While a minimum credit score of 640 is required for automated approvals, exceptions can be made for previous short sales, bankruptcies, and foreclosures.

Manual underwriting can also be used for scores below 640 and other scenarios that may not be eligible for automated underwriting guidelines. Metroplex Mortgage Services offers USDA manual underwriting down to a 600 score. However, be cautious because not all lenders offer this option.

Remember, a certain credit score does not guarantee approval, but it can open the door to available loan programs and improved options. Minimum credit conditions will apply under both automated and manual underwriting guidelines.

NOT Restricted to Only First Time Homebuyers: While many assume that only first time homebuyers can be eligible, previous homeowners are also possible candidates provided they are purchasing a primary residence and meet the qualifying criteria.


How can I qualify for a USDA Loan

  1. Property Eligibility: The subject property being purchased must be located in an approved USDA Rural Development area. There are no exceptions to this policy. Eligible areas can vary per county, so be aware when planning to look for homes. Click here to search the USDA Property Eligibility Map.
  2. Income Limitations: There are income limitations based on family household size, and not just who is on the loan. This can be complicated, so contact us for any specific questions.


Important things you should know about a USDA Loan…

Request our free report “Your USDA Blueprint For Success” and discover how the USDA Rural Home Loan Program can empower you down the road to homeownership.
This is a great educational resource for both homebuyers and Realtors alike.
USDA approved lender


Are you interested in a USDA Mortgage?

USDA Approved Lender: We realize USDA qualified guidelines can be complicated, but that is where we step in to help. My team is built to help walk homebuyers through the USDA process step by step.

Just simply call or email to discuss your scenario, schedule a convenient call back time, or complete our 1-2-3 online pre-qualifier to get started.

(800) 806-9836 Ext. 280

If you are in the market for a home it is important to become pre-qualified. You can get started in less than 5 minutes! Or you may contact us with any questions you may have.

Have Questions or Need Help? Contact Us Today - 800-806-9836

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© 2018 Metroplex Mortgage Services, All Rights Reserved

We lend in the following states: Alabama, Florida, Tennessee & Texas. Any loan program may require sufficient equity and certain conditions may apply.

As a VA Approved lender, we are not endorsed or affiliated with the Department of Veteran Affairs. As a USDA Approved lender, we are not endorsed or affiliated by the U.S. Department of Agriculture.