Getting or qualifying for a USDA mortgage has never been easier. There are a few things you should know before trying to qualify for a USDA loan. They are the following.

1) The first and foremost is where you plan to live or buy a home. There is an eligibility map for the property on the USDA website. Just Google and type in the home or location you’re looking for to determine if your area is eligible. Most rural cities or rural locations are eligible for USDA funding. If your city isn’t, try to see how far you’ll have to move from where you want to live to determine if USDA is right for you. Sometimes you may only have to move 10-15 minutes from city limits and stay in the city you want or be a driver 5-10 minutes farther from work, but get the peace and quiet of live in the country and have a good size garden. for the little ones to play.

2) The second is how much your combined family earns in annual income. This is vital. Generally, borrowers whose combined income exceeds $100,000 a year in Indiana will not qualify. There is an income calculator to determine if your family size and income qualify or not. Family size is very important. 4 or less generally qualifies for the same earnings once you get over 5, it allows you to start earning more money. You must add the total family income minus minors. You can also deduct the children’s expenses from your gross income.

3) The third is to find a lender who knows how to make these loans. It typically takes 5-6 weeks to close a USDA loan. Sometimes it can be done in 4 or less. The reason is that the USDA actually issues a final approval once the lender is cleared to close. Once you have a final authorization issued by your lender, it can take anywhere from 3 business days to 7-10 depending on how well supported the USDA is.

The benefits of choosing a USDA loan over a traditional or conventional FHA loan is that the USDA qualifies for NO down payment. Plus, it only has a monthly financing fee of 0.35 basis points, while FHA is 0.85 and Conventional varies based on credit rating and down payment. USDA loans are becoming the mortgage choice for borrowers in rural or USDA-eligible areas. Find out if you qualify today!