USDA Rural Development has announced new loan limits for its rural development loans.
For a family of 1-4 in Central Ohio – including Delaware and Morrow Counties – the income limit is $78,900 and for a family of 5-8 the limit is $104,150.
USDA Rural Development — along with VA loans — are one of the few loans remaining that allow for no-money down purchases.
To be eligible for the Guaranteed Rural Housing Loan, you must:
- have an adequate and dependable income;
- be a U.S. citizen, qualified alien, or be legally admitted to the US for permanent residence;
- have an adjusted annual household income that does not exceed the moderate income limit established for the area. A family’s incomeincludes total gross income of the applicant, co-applicant, and any other adults in the household. Applications may be eligible to make certain adjustments to gross income – such as annual child-care expenses and $480 for each minor child – in order to qualify. An automated calculator is available online;
- have a credit history that indicates a reasonable willingness to meet obligations as they decome due;
- have repayment ability based on the following rations: principle, interest, taxes, and insurance divided by gross monthly income must be equal or less than 29 percent. Total debt divided by gross monthly income must be equal to, or less than, 41 percent.
This could be a great loan for you to buy your new home, especially if you are looking at a rural property in decent condition.
USDA loans are popular in rural areas in my coverage area around Charlotte, NC. Great program with great rates and buyers can gewt 100% financing in many cases.