USDA Loan Benefits
A USDA loan makes homeownership attainable for those who may not be able to afford to buy a home otherwise. Here are some of the benefits of a USDA loan and USDA Streamline refinance:
• No down payment
• Competitive fixed interest rates
• Lower Private Mortgage Insurance (PMI) than a conventional mortgage
• Flexible credit scores
USDA Loan Eligibility
To be eligible for a USDA loan and USDA Streamline refinance you need to:
• Be a U.S. citizen, a U.S. non-citizen national or a qualified alien
• Live in a USDA determined eligible rural or suburban geographic area. Generally towns with a population of less than 20,000 qualify.
• Meet income eligibility limits set by the USDA. These loans are intended for low to moderate-incomes.
• Use the loan to purchase or refinance a primary residence.
• Be creditworthy. While the USDA doesn’t set a minimum credit score, lenders may impose their own credit requirements.
• Show a stable income with at least two years proof of income.
• Ensure total debt does not exceed 41% of your income.