How to find out if you are eligible for USDA financing?

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
San Diego, California
Below I’m going to write a step by step guide which will help you in determining if USDA is a good path for you to consider. There are a variety of requirements and benefits of this program including no money down. It was mainly designed by the United States Department of Agriculture (USDA) to target low-to-moderate income borrowers located in rural areas of the country and help them afford financing.

Basic Requirements:
  • Live in a USDA eligible Area - see below section for link to check area
  • Must Meet Income Limitssee below section for link to check an area
  • No money down required
  • 640 Credit Score
  • 620-639 By Exception Only with specific requirements needing to be met
  • Applicant can borrower 100% of the appraised value of the home
  • 1% Guarantee Fee that can be financed to loan amount
  • Qualifying debt ratios: Typically under 45% but depending upon Automated Approval
  • Primary Occupancy Only
  • Purchase Transactions Only
If you meet some of the mentioned requirements above and a challenge you face right now purchasing a home is a down payment, USDA might be the right option for you. Let’s get a little deeper into some of the most important requirements which are income limits and whether the property is within a USDA eligible area.

Eligible Areas: USDA is considered Rural and some areas are not eligible for this type of financing. You can search general areas, cities and counties within this USDA search tool: USDA Property Eligibility Search

Income Limits: Not only do you have to live within a certain area, you also must meet certain income limits within the area. These income limits do include your spouse’s income unless you’re able to provide proof of separation or divorce. Here is where you can check to see if you meet the income limits: USDA Income Eligibility Search Tool

If you meet the requirements listed above and would like to get pre-approved or have a general question about the program please reach out to us. We are licensed in every state in the country to offer USDA loans.

You can apply online here: or reach out to myself directly at 619-379-8999 and [email protected]
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