July 13th, 2012 10:06 AM by Steve Iltis
Please find below a continuation of our discussion of the USDA/Rural Housing program. The USDA/Rural Housing Program information discussed is based on information published on June 19th, 2012. There are income limitations which vary depending on family size. Please call us today to discuss any particular scenarios not addressed in our Q & A.
Can I use the USDA loan program for a vacation home or investment property?
No, the USDA Rural Housing program is for primary residence only.
Is there a minimum credit score for the USDA loan program?
The minimum credit score to qualify for the USDA loan program is 640.
I recently went back to work. How long until I am USDA-eligible?
If you are a W-2 employee, you are eligible for USDA financing immediately; you don’t need a job history. If you have less than 2 years in a job, however, you may not be able to use your bonus income for qualification purposes.
I am self-employed. Can I use the USDA loan program?
Yes, self-employed persons can use the USDA Rural Housing Program. If you are self-employed and want to use the USDA Financing, as with FHA and conventional financing, you will be asked to provide 2 years of federal tax returns to verify your self-employment income.
Can I do a “cash out” refinance with the USDA program?
No, the USDA Rural Housing Program is for purchases and rate-and-term refinances only.
Can I use the USDA loan program for my working farm?
No, the USDA Rural Housing program is for residential properties only.
Are USDA mortgage rates good?
Yes, USDA Rural Housing Program mortgage rates are often as low as comparable conventional 30-year fixed mortgage rates. And because mortgage insurance rates are lower, with small down payment, USDA loans are often a better deal. ILG is offering a 30 year fixed note at 3.50%.