What is the maximum amount that I can borrow?

There is no set maximum amount allowed for a USDA residential loan at this time. Your loan amount will vary based on several criteria. Your loan amount will be determined by your debt-to-income ratio (29/41 ratios). Your total household monthly income must be within the maximum income limits as determined by the USDA for your area. Ultimately, the maximum financing amount can be up to 102% of the appraised value of the home (100% plus the 2% USDA loan guarantee fee).

Can I get a USDA mortgage after bankruptcy?

Yes, you may be able to get a USDA after bankruptcy. The criteria state that you may still get a loan if your Chapter 7 bankruptcy has been discharged for three more years. If you are in a Chapter 13 bankruptcy and have made all court-approved payments on time and as agreed for at least one year, you are also eligible to complete a USDA loan application.

How much money will I need for the down payment and closing costs?

USDA mortgage loans require no down payment. They allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed?

While guidelines for a USDA loan require that the property be owner-occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single-family residences.

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Enjoy Rural Living With USDA Loans

Where will your next home be? If you dream of small-town living or a country lifestyle, then you may want to consider a USDA loan. At Neighborhood Mortgage, we specialize in USDA loans, offering you the opportunity to purchase a home in a rural area with no down payment or monthly mortgage insurance.

USDA stands for United States Department of Agriculture. USDA mortgages are low-cost insured home mortgage loans that offer a variety of options. The most common type of USDA mortgage is the USDA Guaranteed Rural Housing Mortgage. These loans offer up to 100% financing for home purchases, carry 30-year terms, and are set at a fixed rate.

If you're thinking about rural living, talk to Neighborhood Mortgage about how a USDA loan can help you. Our team of dedicated advisors, with over 150 years of combined experience, is ready to guide you through the process, ensuring you receive the best advice tailored to your unique circumstances.

We pride ourselves on our personable service, fast and accurate mortgages, and our commitment to helping you achieve your dreams. Contact Neighborhood Mortgage to learn more!

Advantages of a USDA Loan

With so many loan options available, why should you consider a USDA loan? The benefits of a USDA loan are distinct when compared to a conventional mortgage.

Flexible Credit: USDA programs are not credit score-driven, although you must have at least a 620 FICO score to obtain approval through most lenders. USDA mortgage guidelines are written in a way that provides the borrower the benefit of the doubt that there had been, at some point in their past, circumstances beyond their control. As long as the borrower has reasonably recovered from those circumstances, they’re generally going to be credit-eligible for a USDA rural loan mortgage.
No Monthly Mortgage Insurance: A distinct advantage of a USDA mortgage, as compared to a conforming loan, is great interest rates and no mortgage insurance (MI). This can make affording your loan easier over time.
Better Terms and Conditions: The daily USDA mortgage rates are usually comparable to a conforming 30-year fixed loan. USDA Mortgages have no down payment requirement. Other loan programs don’t allow this.

At Neighborhood Mortgage, we look at all your loan options, acting as your financial advisor for mortgages. We're not just a lender; we're a partner in your home-buying journey. Reach out today!

Eligibility Factors for USDA Loans

To be eligible for a USDA loan, you must satisfy several criteria. Your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio).

Additionally, your credit background will be fairly considered. For most lenders, a 620 FICO credit score is required. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors.

Applicants for loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing but be able to afford the mortgage payments, including taxes and insurance, to apply.

If you have questions or want to apply, contact Neighborhood Mortgage. We'll help you get started!

Your Choice for a Trusted Mortgage Broker

Don't waste time with other lenders. Here's why we're the best at Neighborhood Mortgage:

Local and Family-Owned: We're a local, family-owned business serving Washington and Arizona since 2004. Our team has over 150 years of combined experience!
Timely Service: We offer free consultations and can start your loan process within 24 hours. Our loan advisors are available 7 days a week and have a reputation for fast closings.
Trustworthy Service: Our company is built on integrity, and we promise to earn your trust. Our small advisor team is fully committed to looking at all the options and giving you the best advice.
Competitive Rates: We strive to beat our competitors' rates. We'll get you an estimate within 24 to 48 hours for your peace of mind.

Let us be your go-to lending team. Get in touch with Neighborhood Mortgage right now.

Contact Neighborhood Mortgage Today

Explore the possibilities of a USDA loan. Our team at Neighborhood Mortgage is eager to assist you. Contact us today. We'll show you why we're the preferred mortgage lender in Washington and Arizona.

FAQs About USDA Loan Requirements

What is the maximum amount that I can borrow?

There is no set maximum amount allowed for a USDA residential loan at this time. Your loan amount will vary based on several criteria. Your loan amount will be determined by your debt-to-income ratio (29/41 ratios). Your total household monthly income must be within the maximum income limits as determined by the USDA for your area. Ultimately, the maximum financing amount can be up to 102% of the appraised value of the home (100% plus the 2% USDA loan guarantee fee).
Can I get a USDA mortgage after bankruptcy?

Yes, you may be able to get a USDA after bankruptcy. The criteria state that you may still get a loan if your Chapter 7 bankruptcy has been discharged for three more years. If you are in a Chapter 13 bankruptcy and have made all court-approved payments on time and as agreed for at least one year, you are also eligible to complete a USDA loan application.
How much money will I need for the down payment and closing costs?

USDA mortgage loans require no down payment. They allow for the closing costs to be included in the loan amount (appraisal permitting).
What property types are allowed?

While guidelines for a USDA loan require that the property be owner-occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single-family residences.

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Serving the Washington and Arizona area. Neighborhood Mortgage specializes in VA loans, FHA loans, USDA loans, reverse mortgages, and building loans. Free consultations. Over 150 years of combined experience. Loan advisors are available 7 days a week. Call now.

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