USDA Texas Mortgage

About USDA Mortgages

To be eligible, applicants must:

Have an adequate and dependable income.

Be a U.S.  citizen, qualified alien, or be legally admitted to the United States  for permanent residence.

Have an adjusted annual household income that does not exceed the moderate income limit established for the area. A family’s income includes the total gross income of the applicant, co-applicant and any other adults in the household. Applicants 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.

USDA Rural Development field offices can provide information on the moderate income limits for the areas that fall within their jurisdiction, and can provide further guidance on calculating household income. There is an automated income eligibility calculator at:<a href=”http://eligibility.sc.egov.usda.gov” target=”_blank”>http://eligibility.sc.egov.usda.gov</a>.

Have a credit history that indicates a reasonable willingness  to meet obligations as they become due.

Have repayment ability based on the following ratios:  Principle, Interest, Taxes, and Insurance (PITI) divided by gross monthly  income must be equal to or less than 29 percent.

Total debt divided by gross monthly income must be equal to,  or less than, 41 percent.

Homes That Qualify

Guaranteed loans can be made on either new or existing  homes; Existing homes must be structurally sound, functionally adequate, and in  good repair. There are no restrictions on the size or design of the home financed.

The home must not be used for income-producing purposes; aka  Farm or Ranch agricultural exempt properties.

Homes must be located in rural areas. Rural areas include open  country and places with a population of 10,000 or less and—under certain  conditions—towns and cities with between 10,000 and 25,000 residents.

USDA Rural Development field offices can determine eligible areas.

Highlights of the USDA Guaranteed Rural Housing Loan Program

Loans may be for up to 100 percent (102 percent if the  guarantee fee is included in the loan) of appraised value or for the  acquisition cost, whichever is less.

No downpayment is required.

Mortgages are 30-year fixed rate at market interest rates.

Loans may include funds for closing costs, the guarantee fee,  legal fees, title services, cost of establishing an escrow account and other  prepaid items, if the appraised value is higher than sales price.Sellers may  contribute to the buyer’s closing costs.

Home buyers make application with participating lenders.

Buyers must personally occupy the dwelling following the purchase.

Loans may be made to refinance either existing USDA Rural  Development Guaranteed housing loans or our Section 502 Direct housing loans.

For purchase loans, a one-time guarantee fee equal to 2.0  percent of the loan amount is charged to the lender.

The charge for refinance loans is 0.5 percent. Typically, the  lender passes on this expense to the borrower as a closing cost.

After the one-time fee is paid, there is no recurring monthly expense charged for guaranteeing the loan.

Additional Information

Closed loans have  secondary market acceptability, including Freddie Mac, Fannie Mae, Ginnie Mae  pools, and many state housing finance agencies;

Guaranteed loans are subject to the provisions of the Civil  Rights statutes, Including the Equal Credit Opportunity Act.

We’re here to Help Interested home buyers should call or visit their local lender or the nearest USDA Rural Development field office for information about the program. USDA Rural development field office staff will refer potential applicants to participating lenders.

Why Contact Us??

We can get you a quick quote, answer any guideline questions and we will not add your email address to any kind of marketing or email drip campaign. We have access to as many programs as any bank in Texas and have a choice of a wide range of lenders.

Josh Kohl
Mid America Mortgage
12001 W. Parmer Ln. Suite 250
Cedar Park, TX 78613
Office – 512 342 1069
Fax – 512 592 7971
NMLS – 226972
josh@jkohlmortgages.com