If you find yourself attracted to Northeast Oklahoma’s beautiful rural landscapes or suburban neighborhoods, you may find your way there with a USDA loan. The United States Department of Agriculture backs these mortgages to motivate individuals to move to America’s countryside. But even suburban homes near Tulsa or other metro areas could fall under the USDA’s radar. For example, homes outside Catoosa qualify.
Although the government backs them, traditional lenders throughout Oklahoma issue these mortgages. Due to this arrangement, they usually allow low-interest rates. And you may qualify for no down payment. To put that into perspective, taking out a conventional mortgage usually requires a down payment worth 20% of the home’s value.
A FICO credit score of at least 640 regularly earns you the best interest rates. You can still qualify for a USDA loan with a lower score or no credit history, but interest rates won’t be as generous. However, they’d still fall below those of conventional mortgages. To qualify, you must move into a single-family home in a designated area. Plus, you can’t make more than 115% of the median income in that space.
While the government doesn’t set a maximum borrowing limit for USDA loans, it largely depends on a version of your debt-to-income ratio. For instance, your total monthly mortgage payment can’t surpass 29% of your monthly income before taxes. Total monthly payments comprising your mortgage and all other bills can’t exceed 41% of your monthly income.
The USDA also issues direct loans that usually favor very-low-income individuals, as well as grants designed for home improvement.
USDA Single Family Housing Guaranteed Loan Program
This USDA 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.
Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers. Click HERE for full information.
Other USDA Home Buyer Programs & Services