If you're interested in getting a USDA loan in Corpus Christi, you probably want to know all about how to qualify and what the process entails. We are here to answer all of your questions about USDA loans in Corpus Christi and help you get started on the path to homeownership!
Who qualifies for USDA loans?
The USDA loan program is easier to qualify for than many other loans. That's because USDA mortgages don't require a down payment or a high credit score.
To be eligible, you only need to meet some basic requirements. These include:
-US Citizenship or Permanent Residency
-Adequate and dependable income source
-Your total household income cannot exceed the local USDA income limits
-Home must be in an eligible area
History of the USDA Loan Program
The USDA home loan program was created in 1949 to help spur homeownership in rural areas. The program has since expanded and is now available in 97% of the US, including Corpus Christi.
Special Benefits of USDA Home Loans
There are many special benefits that come with getting a USDA loan, such as:
-No down payment is required
-Low interest rates
-Flexible credit guidelines
-Ability to roll closing costs into the loan
-Reduced mortgage insurance
Restrictions and Loan Limits
There are some restrictions that come with USDA loans, such as:
-The property must be located in a designated rural area
-The property must be used as your primary residence
-There are household income limits that vary by county
-USDA sets new limits every year in the spring
-Current income limit for 20221 for a 4-member household is $103,500
Credit Information and Credit Score Requirements
USDA loans have fairly flexible credit guidelines, and you may be eligible with a credit score as low as 620. However, it's important to note that your interest rate will be higher if your credit score is below 680.
Where are USDA home loans available?
USDA home loans are available in 97% of the US, including Corpus Christi. The property must be located in a designated rural area in order to qualify. To be considered "rural," an area typically has a population of 35,000 or less.
Rural development loan
USDA loans are mortgages backed by the U.S. Department of Agriculture as part of its Rural Development Guaranteed Housing Loan program. USDA loans are available to home buyers with low-to-average income. They offer financing with no down payment, reduced mortgage insurance, and below-market mortgage rates.
Eligible area map and Rural areas
The USDA has designated certain areas as "rural" for the purposes of the loan program. You can visit the USDA website to see if your property is located in an eligible area.
Manufactured homes and single-family homes
USDA loans can be used to purchase both manufactured homes and single-family homes. However, there are some restrictions that apply. Manufactured homes must be new, and they must be permanently affixed to a foundation.
Are there special rules for Texas USDA loans?
There are no special rules for Texas USDA loans. However, it's important to note that the property must be located in a designated rural area in order to qualify.
In addition to the USDA loan program, there are other programs available that can help you with your purchase. Texas has several first-time home buyer assistance programs and borrower options. For example, the Texas State Affordable Housing Corporation (TSAHC) offers a program called the Homes for Texas Heroes Home Loan Program. This program provides a 30-year fixed rate mortgage loan to eligible military personnel, veterans, first responders, and teachers.
FHA loans versus USDA loans
It can be confusing trying to determine what type of loan is right for you. While many buyers know that a conventional loan isn't the right approach, they might not be sure what other options could be better. For example, FHA loans versus USDA loans.
FHA loans, like USDA loans, are backed by the government and have many benefits. However, there are some key differences that you should be aware of, such as:
-FHA loans require a down payment of at least three and a half percent
-USDA loans have no down payment requirement
-FHA loan credit guidelines are generally more strict than USDA guidelines
When comparing FHA loans and USDA loans, it's important to note that FHA loans are available to all borrowers, regardless of whether or not they are looking to purchase a property in a rural area. USDA loans are only available to borrowers who are looking to purchase a property in a designated rural area.
Finding USDA loan specialist
If you're interested in getting a USDA loan in Corpus Christi, it's important to find a specialist who can help you through the process. A USDA loan specialist will be able to answer all of your questions and help you get pre-approved for a loan. Texas United Mortgage has experienced mortgage lenders who understand the USDA program and can help you secure a loan.
Pre-Approval for a USDA loan
The first step in getting a USDA loan is to get pre-approved. This process will help you determine if you're eligible for a USDA loan and what type of property you can purchase.
Understanding USDA financing
USDA financing can be confusing, but working with a USDA loan specialist can help make the process easier. A USDA loan specialist will be able to answer all of your questions from the sales price and appraised value to closing costs and everything in between.
Get Started Today
If you're interested in getting a USDA loan in Corpus Christi, it's important to find a lender who can help you through the process. A USDA loan specialist will be able to answer all of your questions and help you get pre-approved for a loan.